Standard Variable Rate

The standard variable rate is a base rate determined by the lender and applied to their 'premium' products, or the standard residential mortgage. It is the rate that loans revert to after the introductory rate, which may be fixed, capped, or discounted. The standard variable rate is usually based on the Australian market rate, with various adjustments applied from lender to lender. The rate can be changed at the lender's discretion, but should be announced to avoid misleading consumers. It usually carries a range of features, including mortgage offset, portability, salary account, and redraw facility.