Standard variable home loans

Perhaps the most common type of home loan for Australian home owners is the standard variable home loan. The standard variable interest rate home loan calculates interest charges based on the Reserve Bank of Australia's current official interest rates. Standard variable rate home loans offer greater flexibility than the fixed interest rate home loan option. Here we look at some of the advantages of a standard variable home loan.

DOMDocument::loadXML(): Start tag expected, '<' not found in Entity, line: 2

Looking for a great value home loan with super fast approval?

Get Pre-Approval online & get a response in minutes with MyRate.

Standard variable home loans; the most flexible of all home loans

As mentioned, the standard variable home loan offers the most flexible option for home owners. As the name suggests, the interest rate charges are calculated based on official interest rates. So, when interest rates are rising, the standard variable interest rate will rise, and therefore monthly repayments will also rise. Subsequently, when official interest rates fall, the monthly repayments on a standard variable home loan will also fall. With a fixed rate home loan however, monthly repayments are set for the period of the term, regardless of whether official interest rates rise or fall.

Advantages of the standard variable home loan

One of the advantages of the standard variable home loan is that these home loans are more flexible than fixed interest rate home loans. For example, you may be able to make extra regular or one off payments anytime that you wish.

Variable rate home loans may also offer other flexible features including redraw facility, direct salary credit into your home loan and line of credit facilities.

Redraw facility on standard variable home loans

A redraw facility on a standard variable home loan helps you save on interest by allowing to pay your income straight into your home loan and then redraw funds as you need them for your everyday living expenses. This helps to reduce the total amount of interest payable because the monthly interest calculation will be done on a lower amount. These are particularly common in the larger cities such as Sydney, Melbourne and Brisbane where mortgages and incomes tend to be higher.

Line of credit on standard variable home loans

A line of credit on a standard variable rate home loan allows you to use some of the equity in your property to use for any other purpose that you like. Typically, you may have a $25,000 line of credit which is available to you at any time and for any purpose. While you are not using the line of credit, it sits in your account helping to reduce your total interest payments. You only pay interest on the line of credit as you use it. But remember, you will only be paying the same low interest rate as the remainder of your mortgage, so it is a lot cheaper than applying for a personal loan or using your credit card.

DOMDocument::loadXML(): Start tag expected, '<' not found in Entity, line: 2

Digg this Post page to del.icio.us Post page to Furl

Home Loan Info.com.au

Home Loans Australia

Refinancing Information

Home Loan Information

Mortgage Broker Information

Featured Home Loan Information

Home Loan Redraw Facility How Can It Benefit You?

Today, there are many different innovative features available on home loans. Some of these features, including redraw facilities, can help you save money on the total interest costs of your home loan over the term of the loan. Here we look at the redraw facility and how it could benefit you.

Home loans in Darwin

The Top End is booming and likewise Darwin has experienced a huge property boom in recent years. With more and more people moving to the Territory's capital, the choice for home buyers seeking finance has increased greatly. Today, there are many home loan options from both the traditional banks and the newer non bank lenders. While most of us are familiar with the large banks, the non bank lenders are relatively new on the scene. Here we take a look at the non bank lending market in Darwin.

Finding a home loan in Melbourne

Are you searching for the right loan for your new home in Melbourne? In the highly competitive market of home lending in Melbourne, there are many options available. Here we look at three of your home loan options: standard variable rate home loans, low doc home loans and loans from non bank lenders.

Negative Gearing Property - How negative gearing works who is it suited too

Over the past decade or so, investing in property has become all the rage in Australia, especially in the larger property markets of Sydney, Melbourne, Brisbane and the Gold Coast. Many budding investors have been attracted by the huge gains that have been achieved thanks to the Australia-wide property boom. Another attractive reason is that of the tax benefits of negative gearing. But is negative gearing into property really a good investment strategy?

Online mortgage calculators help you find the right loan

For borrowers looking for a competitive mortgage in Australia, there are many different home loan options available. So how do you find the best mortgage for your individual needs? Well, you can start by comparing how much your mortgage repayments will be by using our mortgage repayment calculators.