They can be refinanced with another lender, some loans without exit costs. The interest rates do vary and, unlike a fixed interest loan, the borrower will also experience different repayment rates over the life of the loan.
You might elect to continue on an interest-only basis for another term and defer the conversion to principal and interest. However, at some point the lender may force the repayment of principal to reduce their risk. These loans are typically used by borrowers for investment purposes and by borrowers wanting a lower repayment amount than would otherwise apply under a principal and interest loan.
The repayments are drawn against the line of credit and the borrowers are required to maintain the credit at an acceptable level
Learn about different home loan features available