The average standard variable rate is the average rate of the standard variable rates from a specified number of banks and non-banks, typically from the major four banks – Commonwealth Bank, ANZ, Westpac and National Australia Bank.
The average standard variable rate is often used as a guide to compare the standard variable rate of home loans advertised with other financial institutions.
The benefits of having a standard variable rate home loan
- The interest rates and repayments can change at any time, which means they can go up, as well as go down. If interest rates are expected to drop then this could be a great option but remember, nothing it guarnteeed.
- If you want extra flexiblilty a variable home loan might be the way to go. You can make extra repayments on your variable home loan to pay off your loan sooner.
Picking a home loan is no overnight decision. There are many options, as well as many lenders, to choose from. RateCity can kick off your search for the perfect home loan with the home loan comparison tool and mortgage repayment calculator.