Australia Home Loans

• Home
• Home Loans
  • Home Equity Finance
  • 100% Offset Accounts
  • Interest Only Home Loan
  • First Home Owners Grants
  • Renovation & Construction
  • No Deposit 100% Finance
  • Low Documentation Mortgage
  • Honeymoon Rates
  • Fixed Rate
  • Standard Variable
• Insider Tips
  • Beware: Exit Fees
  • Building Home Equity
  • Putting Your Home Mortgage Broker To Work
  • Interest Rate Predictions - Aussie
  • Top 8 Home Loan Questions
  • Mortgage Applications & Pre Approval
• Lenders
  • ING Direct Home Loans
  • Bankwest Home Loans
  • St George Home Loans
  • Westpac Home Loans
  • ANZ Home Loans
  • National Australia Bank Home Loans
  • Commonwealth Bank Home Loans
• In Your Area
  • Darwin Mortgages
  • Gold Coast Mortgages
  • Canberra Mortgages
  • Adelaide Mortgages
  • Brisbane Mortgages
  • Perth Home Loans
  • Melbourne Mortgages
  • Sydney Home Loans

Standard Variable

The standard variable home loan is one of the most popular mortgages on the market.  Offering competitive rates, flexible repayments and lots of added features, this loan type is great for home owners looking for flexible options.

Loan Terms
Once approved, you can choose the term of the loan, either deciding to spread the loan out over 30 years to keep monthly repayments low, or choose to shorten the term to pay off the loan sooner.  Each home owner has different goals and varying financial commitments so decide what is best for you and talk it through with your mortgage broker before committing to a contract.  The terms can often be changed down the line if necessary but there may be administration fees for doing this, so it’s best to get it right now!

Repayment Options
With the standard variable home loan you can choose to pay monthly or arrange to pay more frequently to reduce the loan quicker.  If you choose to make your repayments weekly or fortnightly you can reduce the term of the loan and pay less in interest as the interest on this loan is calculated daily.  This really depends upon your personal financial situation and how you want to repay the mortgage.

Home Loan Features
With this loan, you may be able to organise a redraw account or repayment holiday.  This can be particularly useful if your circumstances change further down the track.  If you can pay extra into your mortgage account, then you effectively set up a savings account.  The extra funds can be accessed for unexpected bills or a holiday for example.

And if you need to take a repayment holiday, you can opt to nominate a period from 3 months to 12 months.  This gives you flexibility should you experience any changes to your lifestyle such as a career break or pregnancy.  

Interest Rates
The rate for a standard variable loan is usually a little higher than a basic loan, but this is due to all the added features and flexibility.  Currently, home loan interest rates are very competitive.  The home loan rate is tracked against the official interest rate set by the Reserve Bank of Australia.  The home loan rate will often be a little higher than the RBA rate, but as the RBA lowers or raises the official rates, mortgage rates generally come down or go up.  So, this type of loan obviously carries some risk, if rate go up, but it also offers savings should the rate come down.

Flexible Options
With this loan type, you can choose to split the loan to take advantage of the benefits of both.  Keep part of your loan variable, so you can take advantage of flexible repayments and the savings if rates fall.  Then fix part of your loan to protect against rising interest rates and have the security of knowing your repayment amount each month.


Standard variable rates have fallen recently.  Your local mortgage broker can help find you the lowest rates and best service.  Call us today on .