Standard Variable Rate Home Loans for flexiblity
Most borrowers prefer Standard Variable Rate Home Loans because they are considered the most flexible and may include features such as the ability to make extra repayments, redraw funds or split your loan.
The interest rate on a standard variable loan is also not locked in as it moves up and down due to the Reserve Bank of Australia’s interest rate fluctuations and market funding costs. However, the different lenders offer different rates and features on their standard variable loan products.
Access Low Rate Standard Variable Home Loans with Flexible Features
Your ability to access a low rate standard variable home loan with flexible features will vary across the different lenders, generally according to the amount you are borrowing. To find out which low rate standard variable home loans will suit your situation email us the form on this page or call 13 LOAN ( +61 2 9249 3739 for international callers) and we will contact you within 2 business hours.
Advantages and Disadvantages of Standard Variable Rate Loans
| Pros | Cons |
| If interest rates drop, repayments might drop | If interest rates rise, repayments will rise along with the amount of interest paid. |
| Pay off your home loan faster by making extra payments without incurring penalties | Extra features means you may pay a higher interest rate than a basic variable loan |
| Additional repayments can usually be taken back by you |
How do Variable Rates Move Up and Down
Variable rates are driven by the Reserve Bank of Australia (RBA) monetary policy, in combination with external costs of credit. The RBA policy is based on a range of economic indicators and is used to manage people’s expenditure and thereby the economy. When the Reserve Bank cuts the official cash rate, lenders will usually move their variable rates with these fluctuations; any move may be the same as the RBA change, but the lender interest rate changes may also be greater or smaller than the RBA movement. Bear in mind that different lenders offer different rates, to find out what the current standard variable home loan interest rates are, you will need to talk to your local mortgage broker.
More information and home loan help
For more information on how and where to find a better home loan deal from an extensive panel of Australian banks and secure mortgage lenders, or to speak to your local area mortgage expert, contact us on 13 LOAN (direct +61 2 9249 3739)
