Variable rate loan is a loan with a variable Interest Rate. The interest rate is linked to the RBA (Reserve bank of Australia) rate and will fluctuated along with this rate. Variable rate loans can tend to be of a flexible nature and can have features included where fixed rate loans have not.

There are generally no restrictions on making extra repayments though lenders are beginning to include early payout fees if the loans are closed in a pre-determined period of time (eg 4 years). Appropriatte Loan structuring can provide an all-round solution.

Variable Rate loans can have benefits such as:

• Available to make extra repayments
• Redraw
• 100% Offset Facilites attached.
• Line of Credit Facilituies
• Interest Capitalisation (product specific)

These loans are designed specifically for Owner Occupiers and Investment clients who can fully veriify their income. You can be Full-time/Part-time or Self-employed people (with an ABN registered for 1 or 2 years or more). With this loan you can:

• Borrow from $50,000 up to $2.5 million, for a period of 15 to 30 years.
• Obtain up to 100% Loan to Value Ratio.
• Choose from a variable interest rate or a fixed rate for 1, 2, 3 or 5 years
• Repay your loan monthly, fortnightly or weekly including by direct debit
• Choose a Line of Credit facility (up to 90% Loan to Value Ratio) , including phone or internet, ATM and EFTPOS Access and monthly statements.
• Choose a Offset Account (up to 95% Loan to Value Ratio) , including phone or internet, ATM and EFTPOS Access and monthly statements.

This type of loan is ideal for people with full financials and who:

• May need to borrow money for debt consolidation, investment or personal purposes.
• Are able to fully verify their income.
• Have equity in their own home or a deposit.