What is a standard variable home loan?
A standard variable interest home loan has an interest rate which is subject to change depending on market conditions.
The interest rate is determined by the lending institutions but is a direct reflection of the RBA's (Reserve Bank of Australia) cash rate so the interest rate can either move up or down.
Standard variable home loans do offer a great deal of flexibility from an additional repayment point of view and also the features available such a line of credit, offset accounts, redraw facilities and so on.
As there are a variety of standard variable products in the market we have listed below some of the most common product types we have available.
Please browse through the list of home loans or contact us and have a chat to one of our consultants who will be able to assist.
Key benefits of standard variable Home Loans
The key benefits of a standard variable home loan come down to the flexibility within the home loan structure itself. Below we have touched on some of those key features and benefits available:
 |
No penalty for making additional home loan repayments |
|
Ability to redraw on the home loan |
|
Wide choice of additional home loan features such a line of credit, home loan offset, cheque account and more |
|
Widest choice of home loans and home loan providers |
There are many available product options out there and to help you we have highlighted some of these standard variable home loans below. Alternatively you can contact us directly and speak with one of our consultants.
Full Doc Standard Variable Home Loans
Standard variable home loans which are classified as full doc simply mean that you are able to provide the lender with a full set of income documents such as PAYG summaries, pay slips and a letter from your employer.
Full doc loans provide you with the most competitive interest rates and also the widest choice of and features. This is the most commonly chosen type of home loan given that the majority of people are on PAYG employment in Australia.
Full doc loans are also available for the self employed and it is simply a matter of providing the lending institution with evidence of income by way of ATO notices so full doc home loans are not just limited to people on a wage or salary.
Contact us to find out more about the range of full doc home loans available.
Basic Variable Home Loans
A basic variable home loan is similar to a standard product although the key differences are in what features and benefits the basic variable product offers.
The basic variable product can be referred to as a 'no frills' home loan which may suit people who are simply after a low interest rate and don't need the add-ons such as a line of credit or redraw facilities for example.
Many people already have an established relationship with a bank so the benefits of the additional features of a standard variable product are just not required.
This is where a basic variable home loan can fit into the picture by providing a more competitive interest rate, bear in mind that there are still some basic variable products which do offer features such as internet banking, Bpay and redraw facilities.
To find out more about the range of basic variable products we have on offer just contact us and a consultant will assist.
Lo Doc Standard Variable Home Loan
Lo doc home loans are predominantly used by self employed applicants who are unable to substantiate their income by way of tax returns or pay slips.
Even though lo doc home loans do not require evidence of income there is a declaration of income which you sign off, this is a statement of your income and the lending institution uses this income figure to determine your ability to repay the proposed debt.
Some of the key differences between lo doc home loans and full doc home loans are highlighted for you below:
|
The amount of the home loan may be lower than that of a full doc home loan i.e. 400k maximum home loan versus 500k maximum home loan for full doc |
|
A lower home loan to valuation ratio applies as there is greater risk for the home loan provider given they are relying on a declaration of income instead of the traditional income evidence on a full doc home loan i.e. up to 95% LVR |
|
In some cases a higher home loan interest rate applies based on the home loan provider and or the home loan to valuation ratio |
Many of our clients who are self employed require lo doc home loans to achieve their goals and when they are able to produce income evidence the opportunity to restructure their finances becomes available to them.
In effect a lo doc home can be seen as a stepping stone with a view to restructuring once you are able to.
Why not contact us to find out more about our range of lo doc home loans.
No Deposit Standard Variable Home Loans
Standard variable home loans also come in the form of no deposit products, the same basic principles apply as per standard variable products although this type of home loan extends to cover the entire purchase price of the property.
There are some no deposit home loans which even offer a redraw facility and you are also able to make additional repayments so there is still that level of flexibility even though the lending institution is providing 100% of the purchase price.
In addition to this, no deposit home loans also offer competitive interest rates, the reason for this is that competition in this space is fierce and this can only benefit you by providing a wide choice of options with varying features and benefits.
No deposit home loans are also available for those people who wish to invest in property and this is becoming a more popular option amongst investors as they can minimise their out of pocket expenses.
Why not contact us to find out what your no deposit home loan options are and which of these may suit your needs best.
Credit Impaired Standard Variable Home Loans
Home loans that fall into the category are there to assist people who have had a blemish on their credit file in the past.
A credit impaired product can assist in cases where you may have a minor default through to being a discharged bankrupt and anything in between, so even though you may have had issues in the past there are still options available to you.
Let's take a look at some of the reasons people use credit impaired home loans:
|
Paying out of existing debts or even defaults by way of a credit impaired home loan to help clean up your credit history |
|
Refinance an existing property from a mainstream home loan provider into a credit impaired home loan as the mainstream home loan may be in arrears |
|
To purchase a property by way of a credit impaired home loan |
|
A title buyout due to separation where one of the parties has a credit issue |
There are a number of reasons why a credit impaired home loan may suit your needs and circumstances during a period in your life.
With that in mind we believe that this type of product should be viewed as a stepping stone back into mainstream lending once you have established a positive repayment history and any listings have dated by a number of years.
Once a certain time period passes we will look to restructure your home loan into mainstream options where a more cost effective solution can be found.
Why not contact one of our consultants to find out how a credit impaired home loan can assist you.
Which standard variable Home Loan is right for me?
There are so many choices when it comes to standard variable home loans and even more choices depending on your unique financial position.
So whether you need a no deposit, a lo doc or a credit impaired home loan to name a few the solution is as easy as contacting us and we can pursue the appropriate home loan options from our lending panel which contains more than 40 lending institutions.
What's my next step in getting a standard variable Home Loan?
The next step to take is to contact us and have a chat to one of our consultants who will listen and understand your needs.
Our consultant will then present you with various options and explain the merits or otherwise of each of those home loans.
Why not contact us and see what we can do for you.
 |
Other Useful Links within our site: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Useful Sites as a point of reference: |
| | | | | | | |
 |
| 
