2 or 3 years fixed interest terms are common and 1-5 years fixed terms are available. FI loans cannot be closed early without incurring some penalties (economic

2 or 3 years fixed interest terms are common and 1-5 years fixed terms are available. FI loans cannot be closed early without incurring some penalties (economic costs). But the most popular loans are what are called Variable Rate Loan over 25-30 years. The interest rate can vary through the term of the loan based on the interest rate movement by Reserve Bank of Australia. These loans can be fully paid anytime. Split loans are common too where a portion is fixed and the other portion is variable. Another unique feature in Australia for Variable rate loans is a so called offset account. This is a normal bank account attached to the loan and any money here offsets the loan balance. So people can save any extra money over the minimum repayment in an offset account to reduce interest payment (as it is calculated on the difference of loan - offset). The money from offset account though can be withdrawn anytime providing tremendous flexibility.