There are two types of loans: fixed and variable.
Fixed loans have a period of time whereby the interest rate for your repayments will be ‘locked in’ during the fixed-interest term. This enables you to budget more effectively as repayments will remain constant and allow you to secure low interest rates without the risk of them rising. Note that there is a fee to lock in your interest rate which varies from lender to lender.
Variable home loans have an interest rate that moves with the market. These loans often have smaller fees than fixed but carry more risk for the individual taking out the loan as the interest rate may increase in the future. An increase in the interest rate will increase the monthly repayments on your home loan.
To better understand which product is right for you, please speak to a mortgage broker or financial advisor so that they can assist you based on your personal preferences and financial circumstances.