Over the last year or so, I received quite a handful of emails and messages from readers on the subject of home loans. I think this blog post is probably overdue. The banks can come up with fancy acronyms or names for their offers but there are basically two types of home loans: fixed rate or floating rate. This is my take: Fixed rates are for people who want to have a higher level of certainty and are quite happy with the lock in period. Floating rates are for people who wish to have the flexibility that comes from not having any lock in period. I believe that which option we choose should depend on our circumstances, our beliefs and, hence, our strategy. I choose a floating rate home loan pegged to the 1 month SIBOR (+ 1%) because I believe that I have the resources to pay down my home loan rapidly if interest rates should spike......