What is standard variable rate?
The standard variable rate is each lender's reference variable interest rate — the public benchmark off which package discounts (typically 0.50-1.20%) are subtracted to produce the actual rate borrowers pay.
Every Australian lender publishes a 'standard variable rate' (SVR), which functions as a reference rate. Almost nobody pays the headline SVR — package discounts of 0.50-1.20% are subtracted to produce the rate borrowers actually receive on a discounted package loan, professional package, or basic variable product.
SVR matters at the margin: it's the rate the loan reverts to if a discount is removed (lender cuts the package), and it's the benchmark that lenders move in lockstep with after an RBA cash rate decision. A 25bps SVR cut typically flows through to the discounted rate at the same magnitude.
When comparing two lenders' headline 'from' rates, also compare their SVRs — a sharp 'discount off SVR' offer is less impressive if the underlying SVR is 0.40% higher than the competitor's. The effective rate is what matters.
SVR · standard variable · lender SVR · reference variable rate
- Variable-rate home loan — A variable-rate loan moves with the lender's pricing decisions and the RBA cash rate cycle — the rate (and your repaymen…
- Professional package loan — A package loan bundles a home loan with a transaction account and credit card under one annual fee (commonly $395-$495) …
- Comparison rate — Comparison rate is a statutory percentage that folds standard upfront and ongoing fees into the headline rate on a $150,…
General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.