home loans are essential unless you have lots of cash.  Most people need a home loan , or they can't buy a home !  There's a wide variety of home loans available.

home loans vary in rates and terms.  You can get a variable rate home loan or a fixed rate home loan.  Rate of interest varies depending on type of home loan

If you get a special deal home loan , then you can slash your interest rate for an initial period (often two years) followed by a return to standard interest rate.

Let's look at the most typical home loans - variable rate and fixed rate.

A variable rate home loan is like it sounds, variable.  That means you don't have certainty of home loan repayments.  Your home loan repayments will vary as bank interest rates vary.  Many people don't want this uncertainty, though these variable home loan deals can be cheaper than fixed rate.

A fixed rate home loan fixes your repayment for the whole length of your loan.  You know exactly what you'll repay each month, and can budget for that amount.  Imagine if variable rates doubled over the next five years, yet your budget is already stretched ?  A fixed rate loan removes this worry.

There's other kinds of home loan deals, but your main decision is between variable and fixed. See some of our partner links for the best deals on variable and fixed home loans ...