A home loan can come with a number of options including offset accounts and redraw options. A good mortgage broker can advise on the most appropriate home loan to fulfill your requirements.
An investment property loan has similar features to a home loan but can also come with an interest only option for between 3 and 5 years.
Fixed Rate or Variable Rate?
A variable rate loan provides flexibility and allows you to increase your repayments if you have spare funds. The downside is that if interest rates rise you repayments will also rise. Depending on your income earning capacity, this may impose hardship on a borrower.
A fixed rate interest loan also comes with fixed repayments. These are not so popular in the current economic environment of low interest rates.