Standard Variable Intererst rate
This type of home loan is the most popular and common type of loan available in the market. Most advertised loan rates refer to Standard Variable Rate Home loan.
The loan term of variable rate is usually 30 years but it can be changed when you wants to pay more principle and interest. The interest rate varies with market fluctuations. The interest rate is often referred to as SVR (Standard Variable Rate). Obviously with a variable loan it will be beneficial if interest rates fall and unfavourable if interest rates rise, however the flexibility and features make this type of loan popular.
With any loan it is important to look at the features that are important to the client. If the features are not important, it may be cheaper to use a basic loan product.
First home buyers won't receive the grant in cash but it will goes in to the pot of money on settlement day. This will reduce the amount of cash that you need to pay to purchase the house. The benefited applicant must oocupy the home with in 12 months of settlement date or construction completed date. At least one applicant must occupy the home as your principal place of residence for a continuous period of at least 6 months.
Standard variable loans can offer a number of features including:
- Monthly repayments, accelerated fortnightly repayments, true fortnightly repayments, weekly repayments
- Repayments may be altered during the term to suit the client
- Interest rates move with the market
- Additional repayments or lump sum payments
- Interest Only repayments
- Repayments holiday if in advance (repayment pause)
- Offset account (interest offset)
SVR loans suit clients that require flexibility and have a need for the features available.