Variable-Rate

A variable-rate loan means your interest rate may change during your loan term. Changes will be in line with the RBA base rate, meaning your repayment amounts could go up or down during your loan term.
While variable-rate loans can be inconvenient if you prefer a fixed payment for budgeting purposes, they can often work out cheaper in the long-run. However, you should check the RBA base rate before taking out a variable rate loan and assess the chances of it either increasing or decreasing during your loan term.