What is a bank’s standard variable interest rate?

A bank’s standard variable interest rate (SVR) is a bank’s officially announced set interest rate. It is based on the Reserve Bank of Australia (RBA) cash interest rate, which it announces each month after its monthly meeting. However, most variable rate loans are offered at a discount to a lender’s published SVR.

Are split loans available to first homebuyers?

Yes – split home loans are available to all borrowers, whether you’re a first homebuyer , a refinancer, an owner-builder or a property investor. Use Savvy’s split loan repayment calculator to see how much you could save as a first homebuyer choosing to split your mortgage.

Can I fix my loan again once my initial loan period expires?

Yes – many lenders will allow you to refix your interest rate multiple times over the life of the loan. However, this doesn’t mean you’re guaranteed to receive the same interest rate that you were offered previously. Lenders are likely to offer a different interest rate on your fixed loan depending on how interest rates have changed in the time since you first took out your split loan.

How long can I fix my loan’s interest rate for?

Lenders generally offer fixed term rates between one and five years, although longer fixed terms up to ten years are available in some circumstances. Introductory loans generally have a fixed interest rate for one to two years.

Can I get a split loan for my investment property loan?

Yes – investment loans come in all shapes and sizes to suit the needs of a variety of property investors, from split or fixed interest-only loans to variable principal and interest loans to low deposit and guarantor loans. There's a mortgage available for almost every borrowing investment need.

Will my offset account work for both the variable and fixed portion of my loan?

No – your offset account will only be linked to one part of your loan, which will likely be the variable portion. However, some lenders do allow borrowers to have more than one offset account, but you’d need to deposit funds into both accounts to gain the offset benefit on both sides of your loan.

If I make extra repayments and pay my variable loan portion off early, will I be charged early exit fees?

No – early exit fees on variable rate home loans were banned in Australia in July 2011, so they’re only charged on fixed rate, fixed term loans. It would be possible to pay off the variable portion of your loan but continue to pay your fixed portion so you avoid paying early exit fees.