The lender has the right to change the interest rate on a variable rate home loan. As an example, this may occur if the Reserve Bank of Australia increases its interest rate and the lender chooses to pass this increase on to its borrowers. The main types of variable rate home loans are: –
Standard variable home loans, which are typically a lender’s core product, offering an array of features including offset accounts, portability, fee free redraw, and more.
Basic variable home loans, which usually have a lower interest rate than standard variable because they have less flexibility and fewer loan features.