What is a standard variable rate (SVR)?


Liron Nehmadi

Liron Nehmadi

Jun 24, 2016( 1 min read )

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).


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Lenders are likely to put variable rates up and down several times throughout the life of a loan. However, the discount provided as part of the sale should remain for the life of your loan. For example – if you are on a rate of 3.95% which includes a discount of 0.10% and your lender puts up their variable rate to 4.25% then you will be on 4.15%.

Unlike the low introductory “honeymoon rates” used by some lenders to attract new customers, the discounted rates at the Switch & Save Sale should not expire while you continue to hold that loan with them, unless you change products or refinance.

You must check this and confirm with the lender/product you are interested in.

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