Variable Interest Rate
A variable interest rate is a loan rate that can change over time based on market conditions and decisions by your lender.
Quick Reference:
Loan Rates Fall. Loan Rates Rise. RBA Influences Direction.
Expanded Explanation:
When you take out a variable rate loan, your repayments may increase or decrease as interest rates change. This flexibility can be helpful when rates fall but risky if they rise. Unlike many other western countries, in Australia these loans are standard for mortgages. Variable loans often offer more features, like offset accounts or exrtra repayment options.