Standard Variable Loans
- This facility allows you to borrow money for a set period of time (usually 25-30 years).
- During this term you make regular repayments, based on the current interest rate. The interest rate can vary depending on fluctuations in the official cash rate, based on the Reserve Bank.
- You can make Additional repayments without incurring any penalty. This allows you to pay off your loan earlier as well!
- You can also have a redraw facility with this loan, which enables you to ‘redraw’ the additional repayments (if required).
- Rates will vary according to the cash rate or lenders independently raising it.
Same as standard variable but comes with a fully transactional account. The balance in this account is used to reduce the interest charge on your loan account. Operating this type of account correctly will save you thousands of dollars in interest repayments. The key is to let your own monies sit in your account for as long as possible.