The interest rate can vary throughout the term of the loan - both up and down. The term is usually 25 to 30 years. The advantages of this are that if interest rates fall, your repayments will also come down; you can usually make additional repayments without incurring a penalty allowing you to pay off your loan faster. Remember, if interest rates rise, your repayments rise as well.

Lenders generally offer lots of packages on the standard variable rates. The advantage of Standard variable rate loans is that they may include many features which if used correctly can help pay off your mortgage more quickly. These features include mortgage offset, redraw and revolving line of credit. Some lenders will also offer discounts packaged with one year introductory rates.