You have to make a lot of decisions when purchasing a home.  Among these decisions is to choose between a variable rate home loan and a fixed one.  No one can predict if the interest rates will increase or slide down so no one knows for sure if getting a variable rate home loan is the best option.

The best thing you should do is to understand what a variable rate home loan is before making a decision.  The increase in the variable rate home loan will depend on the increase of interest rate by the Reserve Bank.  Although the interest rate is announced every month, no one knows if it will increase, decrease or stay the same.

Although there is a possible increase in interest rates, more homebuyers choose the variable rate home loan.  The reason is that even if there is an increase in the interest rate, the fixed home loan interest would still be higher.  So many homebuyers tend to choose the variable rate home loan and hope for the best that rates will not climb up.