The interest rate on these loans vary at anytime depending on the market forces. The interest rate on a standard variable loan is not fixed as it is closely linked to the Reserve Bank of Australia’s interest rate fluctuations and market funding costs.
The features of a standard Variable rate loan vary dependant on the individual lender but these loans generally offer an offset facility, redraw facility, no limits on additional repayments and in most cases no early pay-out penalties.
A standard variable loan can usually be combined with other types of loans and are ideal for the borrower wishing to pay their home off sooner rather than later.
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