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When the Reserve Bank announces an increase or decrease in interest rates, lenders usually adjust their standard variable home loan rates to reflect the increase or decrease.
A standard variable home loan is a variable interest rate loan with principal and interest repayments over a maximum term of 30 years.
However, an increasing number of lenders now offer standard home loans with interest-only repayments for periods from five to 15 years, which revert to principal and interest loans at the end of the interest-only period.
