Standard Variable Rate Loans

Break down

• Most popular loan facility choice, in Australia
• This facility allows you to borrow money for a set period of time (usually 25-30 years)
• During this term you make regular repayments, based on the current interest rate. The interest rate being a variable rate can vary depending on fluctuations in the official cash rate, based on the Reserve Bank.
• You can make Additional repayments with- out incurring any penalty, this allows you to pay off your loan earlier as well!
• You can also have a redraw facility with this loan, which enables you to 'redraw' the additional repayments (if required)
• Certain Lenders also offer a 100% offset facility with most of their products as well
• Most Lender's have interest rate discounts on the amount that is borrowed, which can also be extremely competitive

Drawbacks :

• If interest rates rise, so does your repayments accordingly