V
Loans
Variable Interest Rate
An interest rate that can change over the loan term, usually linked to the prime lending rate. When the repo rate changes, your monthly repayment amount may increase or decrease accordingly.
Usage Examples
"My home loan has a variable interest rate of prime minus 0.5%, so it changes whenever the Reserve Bank adjusts the repo rate."
"With a variable interest rate, your monthly payment could go up or down without warning."