Basic Home Loan
A Basic Home Loan is a ‘no frills home loan’, also known as a ‘Basic Variable Rate Home Loan’. It’s simple. You will get a low interest rate home loan with ‘no frills’ features. Having a basic home loan variable interest rate means:
- You can purchase your first home sooner, as you will be required to pay less interest and fewer fees.
- interest rates of half to one per cent lower than the standard variable rate, with different lenders offering a range of products.
Advantages of a Basic Variable Rate Home Loan
- Choice of repayments – Can be monthly, fortnightly or weekly
- Low interest rate – The interest rate is lower than a standard variable rate loans.
- If you are on a tight budget, it can make your monthly repayment schedule easier to manage.
- Extra repayments are allowed – most lenders allow extra repayments without incurring a penalty.
Why wouldn’t I choose a Basic Home Loan?
- Variable interest rate – The interest rate fluctuates with market conditions.
- Limited features – Certain features may not be available, or be as flexible as a standard variable rate home loan.
