Variable Rate Home Loans provide flexibility and the interest rate can rise or fall in line with the market.

Which means that you can either benefit from any interest rate cuts or your interest costs and repayments can increase if your Bank's standard variable rate goes upwards.  

You have the flexibility to repay lump sums or repay the loan in full without an economic cost being charged. 100% interest offset is also available on variable rate loans - this means that the credit funds you have sitting in your offset account (generally your transactional account or investment account) offset the interest you are paying on your home loan. For example: if you have a home loan of $200,000 and have $50,000 in your offset account, you will only pay interest on the $150,000.

This type of loan would be suitable if you wanted flexibility in being able to repay lump sums off your home loan or if you thought that rates were likely to fall over the coming years.

Generally, you are able to switch from variable to fixed interest rates without having to change your loan account number - fees may apply.