Standard Variable Rate Home Loan
Standard Variable Rate Home Loan is the most common type of mortgage product. For borrowers, this type of home loan offers more features and benefits, including some or all of the following:
- It can be combined with other Home Loan products to provide a more cost effective package of banking services
- Redraw facility, allowing you greater flexibility of payment options
- Extra Repayments without penalty, which can save money on interest
- Access to a Line of Credit
Variable rate home loans carry higher interest than a basic home loan, because of the extra features.
Variable Rate Home Loans Newcastle
Channel Direct offers competitive interest rates and great flexibility when it comes to Home Loans Newcastle through variable rate home loans.
Home loans Newcastle with variable rate, your reimbursements are dependent on the economic situations, particularly the base rate set by the Reserve Bank. Hence, your repayments may increase if interest rates rise, and may decrease if interest rates fall.
However, if you are worried about the effect of fluctuating interest rates on your capacity to pay your loan, a home loan with a fixed rate might be ideal.
Advantages of a Standard Variable Rate Home Loan
- Choice of Repayments – Can be monthly, fortnightly or weekly
- Redraw Facility – Most institutions (subject to terms and conditions) will allow you to withdraw any surplus funds you have above the minimum repayment
- Offset accounts – This is an account linked to the home loan account which allows you to use the account balance to decrease the amount of interest charged to your home loan account. A 100% Mortgage Offset Account uses every $ in your account to offset the balance of your loan.
- Extra repayments – You can make lump sum repayments or pay more than the minimum repayment without charges.
Why would I not choose a Standard Variable Rate Home Loan ?
- Higher interest rate then your normal basic, low interest home loan
- Monthly loan repayments can increase due to interest rate changes
- You may not need the extra features, and cost is your primary consideration. See Basic Home Loans
Is the Standard Variable Home Loan Suitable for You?
Whether you are a first-time home buyer or you are a real estate investor, a standard variable home loan is suitable for you if you wish to benefit if rates decrease.