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)