Standard variable rate



Dec 9, 2009( 2 min read )

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All lenders have a standard variable rate which is their benchmark rate or the interest rate they use to advertise their products. However, definitions for a standard variable rate differ from lender to lender because there is no set law or regulation to determine the criteria.

Another measure to review is the comparison rate. The comparison rate includes other additional fees and charges such as ongoing monthly or yearly fees and upfront fees such as application or establishment fees that you may incur depending on the loan.

With that in mind, you may not necessarily be offered a standard variable interest rate when choosing a home loan because the rate you are given is determined by several factors including:

  • The amount you borrow
  • The value of the property
  • Your credit history

It will also depend of the features and services you require for your home loan and the package you choose. For instance, some lenders have a basic rate which comes with minimal or basic features and lenders may have a standard variable rate package which includes all the features a home loan can incorporate.

To see how much your repayments might be on different variable rates over different home loan lengths you can use Ratecity’s free Australian home loan calculator. You can also compare variable rate home loans and fixed rate home loans to find a great home loan to suit your circumstances.


^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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