Standard variable Rate loan is the most popular type of home loan available in Australia. The interest rate on this loan moves up and down when the official interest rate fluctuates. This means you have to bear in mind that the interest rate may go up or down during the loan term. The features and interest rates on this loan differ from lender to lender and also depend on the amount you borrow.

The advantage of the Variable interest rate loan is that a drop in interest rate means the, repayments might drop .You can make extra payments without penalty thus allowing the home loan to be paid off faster. Another advantage of the standard Variable rate loan is that additional repayments can be taken back by you and this product is flexible.

The disadvantages of the loan are that   a rise in interest rates means the repayment rises too. The borrower is has to make larger repayments. They generally attract a higher interest rate because they are variable and drop in interest rates may get them less income.

Some tips and strategies when deciding on how to gain maximum on the standard variable rate loan. Most Standard variable loans have full offset account facility seek such a loan.

Make weekly or fortnightly repayments on your loan, they clear faster than monthly payments because you are making a couple of extra payments a year.

Retain your current repayment levels even if the interest rate drops. Have your wages paid into your loan account, and this will attract interest and hence reduce to reduce interest on the loan and you can use the interest free period for purchases before paying using your credit card and pay the credit card bill from the loan account.

Whenever you get huge payments like tax refunds you can put them into your loan account and use the free redraw facility with the help and withdraw it later of you want.

As of April 2009, April 2009 for a loan amount of AUD $ 200,000, the interest rate is as low as 5.97%, standard Variable. The monthly, annual, redraw and extra payment fee are nil and the fixing fee is also nil. The CCR is 6.08%.

Most financial institutions have the facility of online applications and also calculators. You can apply online for the loan by giving the particulars asked for and the calculator computes everything for you. Mortgage brokers also advise on the Standard Variable Rate Loan.