The main feature of the Standard Variable Home Loan is that discounts are applied to the variable rate for the life of the loan depending on the borrowing amount; the more you borrow, the greater the rate discount.
The lower end of the borrowing spectrum does attract a high variable interest rate, however the next borrowing threshold and up range from moderate to low rates.
The Standard Variable Home Loan gives you the ability to pay off your loan sooner with a 100 per cent offset account option and the option to make early repayments with the flexibility of being able to redraw any additional repayments made from the redraw facility.
This loan can also be split between a fixed and variable rate. Lump sum repayments are allowed with this loan and your regular repayments can be made either weekly, fortnightly or monthly.
Customers of the Standard Variable Home Loan can borrow up to 95 per cent of a property’s value, with any amount over 80 per cent subject to lenders mortgage insurance.
You can also top up the Standard Variable Home Loan through the offered top up facility if you need access to more funds.
Loan repayment insurance is an offered option with this home loan, which would protect you if you become unable to make repayments during your loan term.
Who is the Service One Alliance Variable Rate Loan good for?
The Standard Variable Rate Loan is good for owner-occupiers and investors who want a large loan and repayment flexibility.
This loan offers moderately low to low variable rates for greater loan amounts.
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If you’re borrowing a high loan amount and want flexibility in the way you repay your home loan, the Standard Variable Home Loan could be a good option for you. Greater rate discounts apply to greater borrowing amounts and you have the ability to make lump sum repayments, extra repayments, choose a 100 per cent offset account and choose your repayment schedule.
However, there are moderately high establishment costs associated with this loan, as well as a monthly fee and discharge fee. And, if you’re borrowing a small amount, the variable rates offered are moderate to high.
It’s best to research your needs against the benefits and cons of this loan to determine if it’s the best option for you.
SERVICE ONE Alliance Bank Service One Alliance Variable Rate Loan Options
There are different rates offered at different borrowing amounts for the Standard Variable Home Loan offered to both owner-occupiers and investors. Find out more information about each of these options offered by SERVICE ONE Alliance Bank at the links below.
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