FAQs / Types of home loans & features
A variable rate home loan is one where the interest rate goes up and down with market fluctuations, which are influenced in part by the official cash rate set by the Reserve Bank of Australia (RBA).
The two main types of variable rate home loans are:
- Standard variable rate home loans – these often include features such as redraw facilities, a line of credit and an offset account, where you can use your savings to pay less interest on your loan.
- Basic variable rate home loans – these offer lower interest rates, but fewer if any of the features of a standard variable rate home loan.
Variable rate home loans are the most popular type of home loan, as they provide more features and flexibility than fixed rate home loans and usually give you the option to pay your loan off earlier.
Home Loan Guide
Related articles
Fixed vs. Variable Home Loans: Which is Better for You?
The lowdown on interest rates
- What types of home loans does Tic:Toc offer?
- I don't know what type of loan or features will be best for me. Do I need to know before I apply online?
- How do I choose a home loan?
- What type of home loan is best for a first home buyer?
- Do you have an offset account and how does it work?
- What is a home loan interest rate?
- Principal and interest or interest only?
- What is a variable rate home loan?
- What is a fixed rate home loan?
- Is fixed or variable rate better?
- What is a roll-to rate?
- Can fixed rates fix your budget?
- Can investors get interest-only home loans?
- What is an owner occupied home loan?
- What’s the difference between an owner occupied property and an investment property?
- Do you have to live in a house before renting it out?
- What does an investment loan comparison rate mean?
- Can you have 2 offset accounts?
- Can you have an offset and redraw?
- Can I offset 100% of my home loan?