Standard variable rate loans are Australia’s most popular type of home loan.
Variable rate loans generally offer:
- excellent flexibility
- low fees
- and features such as a redraw facility, offset facility, no limits on the amount of additional repayments and in most cases no early pay out fees.
The interest rate for variable rate loans varies throughout the loan term.
Advantages:
- If interest rates fall, your repayments will fall
- You can make extra repayments and pay your loan off sooner
- Features such as redraw and an offset account
Disadvantages:
- If interest rates rise, your repayment will rise
Download our ‘Which Home Loan’ brochure (pdf) for more tips and general information.
