The standard variable rate home loan is the most popular home loan type in Australia. The rate is not fixed and is mostly determined by the official cash rate set by the Reserve Bank of Australia. The banks can change their standard variable interest rates as they wish, however due to the competitive nature of the industry, this very rarely occurs.
- Most Flexible product
- Can make additional repayments to pay down principal
- If Interest rates drop, it is likely that your repayments would drop too
- If interest rates rise, it is likely that your repayments would rise too
- Due to its flexibility, it is likely that the rat will be higher than a basic variable home loan