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This is the normal interest rate charged by the bank. It may move up and down at the banks discretion but due to competition it generally moves in line with official interest rate changes made by the Reserve Bank of Australia.

Generally you should be eligible for a discount off the standard variable rate via one of the following:

• Loan Size
• Profession
• By taking a professional package

For all standard home loans the discount is expressed as a percentage amount off the standard variable rate eg 0.5%. Accordingly the interest rate that you will pay will still move in line with official interest rate changes.

Features

Standard Variable loans tend to offer the maximum flexibility. Whilst you will need to check with each lender they generally offer:

• Ability to make extra repayments anytime
• Ability to redraw extra payments
• Ability to split your loan into a number of sub accounts
• Ability to fix the interest rate on your loan at any time
• May operate with mortgage offset account
• Option of interest only (except for owner occupier)