FAQs / Types of home loans & features

What is a variable rate home loan?

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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

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