Variable Rate Loan:
This type of loan offers maximum flexibility and features. It also offers principle and interest repayment or interest only option. You may make additional repayments at any time. Many of such loans are also offered with re-draw option.
The rate is based on the standard variable market rate. This rate is subject to change up or down depending on the economic conditions.
This facility may be structured as split combination loan. Partly may be fixed and partly may be variable. Individual loan statements will be issued for split loans.
A transaction account may be linked to the loan facility. The transactional account may also be referred to as a mortgage offset account.
Some banks actually may allow for Direct Salary crediting.