The Standard Variable Home Loan is Australia's most popular type of home loan. The main reason for it’s popularity, is the flexibility associated with such a home loan. Generally a Standard Variable Home Loan will allow you to fix the interest rate on your loan or split the home loan into fixed and variable components.

The Standard Variable Rate Loan will also allow the borrower to make extra repayments off the loan principal without incurring any penalties. It may also provide you with the option to re-draw additional funds paid off the loan principal.

The interest rate can vary up and down through out the term of the loan and usually depends on the interest rate set by the Australian Reserve Bank. If interest rates fall, your loan repayments will come down.

However if the rates increase, so will your repayments.

The Standard Variable Home Loan term is usually set at 20 to 30 years