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.