What Is The Average Standard Variable Home Loan Rate (SVR) In Australia Currently?
The average standard variable rate SVR in Australia right now (October 2016) is 4.83 per cent;
The lowest SVR in the market right now is 3.63 per cent;
The highest SVR is 7.16 per cent;
The average three year fixed home loan rate is 4.34 per cent according to thefinancesite.com.au
Minimum Deposit %
Home Value Home Loan (Owner-Occupier Special)
Line of Credit Home Loan (LVR
Ultimate Fixed Home Loan (New Customers) 1 Year
3.59% Fixed – 1 year
Standard Variable Home Loan (Spring Special) (LVR
Is there any reason for you can’t save thousands of dollars?
The traditional thing we do for people who are willing to lend us money is to pay them interest on the loan. If they lend us $ 100,000 for ten years, we might agree to pay them 5% interest. Usually, this interest is compounded. This means that the interest is calculated after a certain period, often one month, and that amount is added to the balance of the loan. So on the next period you are paying 5% on the new balance.
The really important thing for the economy, in general, is that the interest rates commonly charged on loans have a big impact on people’s willingness to borrow money.
When interest rates are low, many people are happy to borrow money and have no trouble repaying because the loan balance grows quite slowly. But if interest rates are high, the compounding effect is magnified. At 10% interest your loan balance will double every 7 years (approximately), at 5% it takes almost 15 years to double (assuming you make no payments).
So higher interest rates tend to stifle the economy by making it more expensive to borrow money. When rates are high, people are less likely to buy a home or car or borrow to start a business. They are also less likely to buy all kind of things they don’t really need. A slower economy means lower incomes and fewer taxes paid which leads to fewer services for the increasing number of poor people.
Start by browsing and comparing your home loan options at TheFinanceSite. Don’t wait for rate cuts that may or not come from the RBA and your lender. The biggest rate cuts are the ones that borrowers organize for themselves by refinancing, or threatening to refinance, to a cheaper, better product.