Standard Variable Home Loan (Principal and Interest) (New Customer) (Amounts $250k+)
- Last updated on 02 Apr 2020
based on $300,000 loan amount for 25 years
- No ongoing fees
- Suitable for low deposits
- Free redraw facility
- Repayments may decrease if RBA cuts rates
- No extra repayments
- Not available for first home buyer
- Repayments may increase if RBA raises rates
Interest rate structure
$250k - $100m
Principal & interest
Loan term range
5 - 30 years
Redraw fee: $0
Allows split interest
Estimated upfront fees
Minimum SMSF Amount
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A construction loan is loan taken out for the purpose of building or substantially renovating a residential property. Under this type of loan, the funds are released in stages when certain milestones in the construction process are reached. Once the building is complete, the loan will revert to a standard principal and interest mortgage.
The standard variable rate (SVR) is the interest rate a lender applies to their standard home loan. It is a variable interest rate which is normally used as a benchmark from which they price their other variable rate home loan products.
A standard variable rate home loan typically includes most, if not all the features the lender has on offer, such as an offset account, but it often comes with a higher interest rate attached than their most ‘basic’ product on offer (usually referred to as their basic variable rate mortgage).
‘Principal and interest’ loans are the most common type of home loans on the market. The principal part of the loan is the initial sum lent to the customer and the interest is the money paid on top of this, at the agreed interest rate, until the end of the loan.
By reducing the principal amount, the total of interest charged will also become smaller until eventually the debt is paid off in full.