The standard variable interest rate loan has an interest rate that will move up or down, usually, though not always, following the rise and fall of official interest rates determined by the Reserve Bank of Australia.
Repayments are made weekly, fortnightly or monthly with a loan term of up to 30 years. In the early years of the loan, the bulk of each repayment is usually directed towards interest charges, with only a small amount put towards the loan principal. In later years, the opposite applies.
