This is each lender’s ordinary variable loan. Usually the standard variable rate is the reference point for each other loan type.
The standard variable loan is usually a fully featured loan with an offset account (What is an Offset Account?).
It is actually very rare for someone to take out a Standard Variable loan by itself. Usually it is coupled with a Professional Package for a rate discount and extra features.
As the name suggests, this is a basic, no-frills style of loan. A Basic Variable generally has a lower interest rate than the Standard Variable, minimal ongoing fees, and minimal additional features such as offset accounts and credit cards.
Basic Variable loans are ideal for people who want a fairly inexpensive loan with minimal extras (e.g. investors, who do not require the full banking package on an investment property).
A Line of Credit is a variable loan that offers a high degree of flexibility to the borrower
Usually a Line of Credit has a specified limit, within which you can borrow as much or as little as you like, as long as you never exceed the limit. Interest is charged monthly based only on the amount actually borrowed
This product is ideal for people who wish to transact regularly on their loan, or do not want to borrow the entire loan all at once. Generally a Line of Credit will be combined with a Professional Package.
A Fixed Rate loan allows you to lock in your interest rate for a specified period of time, usually between one and five years. This product is ideal when you are concerned about variable rates rising during the first few years of your loan, and/or would prefer to know exactly what your repayment will be for that period.
Fixed Rate loans can be quite restrictive with extra repayments, and will often charge penalties if you pay off your loan during the fixed period, so should be considered carefully (To Fix or Not to Fix?).
A professional package is essentially an add-on to an ordinary product such as a Standard Variable, Line of Credit or a Fixed Rate Loan.
A professional package ordinarily entitles you to a significant discount off a lender's standard variable interest rates, a fee-free offset account (What is an Offset Account?), a fee-free credit card, and minimal application and account-keeping fees. In return, the package usually charges an overall monthly or annual fee. Generally the cost of this fee is far outweighed by the interest rate discount you receive.