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When looking for a home loan, the loan rate should be a very important
factor in your choice of loan product.
There can be quite a large variation betweens home loan rates. Even a
small percentage difference in the loan rate can make a very significant
difference in the length of time it takes to pay off your home loan and
also the amount of interest paid at the completion of your loan.
Home Loan Rates can also change over the life of the loan. See below
for some of the common loan types;
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Standard Variable Rate - loans whose rates change regularly. Flexibility
to make extra repayments.
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Standard Fixed Rate - fixed interest rate for the life of the loan.
Limited flexibility on extra repayments. The rate is typically slightly
higher then the comparable standard variable rate loan.
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One Year Fixed Rate - fixed interest rate for the first year and
then moved over to the variable rate.
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Two Year Fixed Rate - fixed interest rate for the first two years
and then moved over to the variable rate.
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Split Loan - the loan is split into a variable and fixed component.
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There are a plethora of other loan types which provide different
benefits. Investigate these to see if one of these suit your needs.
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