Basic variable rate or no frills home loans
Basic Variable Rate Home Loans are sometimes referred to as 'no frills' loans and tend to offer a lower interest rate than Standard Variable Home Loans. However, Basic Variable Rate Loans offer fewer features and less flexibility than standard variables. In general, if you require extra flexibility (such as a redraw facility) you may have to pay for it.
Recent basic variable rates and home loan help
As the rate on basic variable home loans move up and down in line with the Reserve Bank's official cash rate, it is important to keep up to date on where the current rates lie. To access the most recent interest rate information and find out if a basic variable rate home loan is right for your situation, email us the form on this page or call 13 LOAN (or +61 2 9249 3739) and we will contact you within 2 business hours.
Advantages and disadvantages of basic variable rate home loans
| Pros |
Cons |
Lower interest rate than the standard variable loans (usually around 0.5% less) |
Usually not as flexible as standard variable loans |
Repayments are lower than standard variable loans |
Offer less features |
If interest rates drop, repayments also drop |
If interest rates rise, repayments will rise along with the amount of interest paid. |
Basic variable rate loans with more facilities
With the increased competition in the lending market, there are now lenders who offer Basic Variable Rate Home Loans with additional features such as redraw. To find out which lenders offer these facilities, talk to your local mortgage broker.
More information or help
For confidential assistance with your home loan or to talk to your local mortgage broker, call us at any time on 13 LOAN or call our direct line on +61 2 9249 3739.
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