Glossary - V

variable interest rate

Where consumers receive interest on an investment or pay interest on a loan at a rate that may go up or down during the term. Opposite of fixed interest rate.

variable rate home loan

A home loan where payments increase or decrease in line with rises or falls in official cash rates. Opposite of fixed rate home loan.

vendor finance

Where the seller of a house or other asset, such as a car, offers to lend you money to buy the property or asset as part of the sale.

volatility

The extent to which the return on an asset fluctuates over time. It is measured by the rate at which the price of a security moves up and down. The higher the frequency of movement in the price of a security, the higher the volatility and the greater the risk.

 


Last updated: 29 Jul 2015