The standard variable rate loan comes with many options and the interest rate fluctuates depending on market conditions. You have flexibility of making additional repayments without penalty and the ability to redraw any additional repayments you have made at any time.

Many lenders offer a basic variable rate loan with a lower rate than the standard variable rate loan. These loans generally have many of the same features as their standard variable rate cousins, but often aren't as flexible. For example, some of these loans may not allow you to redraw additional payments or you may incur fees if you do so.

You may consider a variable rate loan if:

  • You want ultimate flexibility with your loan
  • You want to be able to make large principal repayments on your loan
  • You have the capacity to absorb increases in interest rates without undue hardship, and conversely, benefit from rate decreases

Check out our current special home loan offers or view our interest rates.

Download a fact sheet to learn more about fixed and variable interest rates

Fixed or Variable Interest Rate Loans
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