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 Home 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.
More Information on Basic Variable Rates or Home Loan Help
If you would like more information on Basic Variable Rate Home Loans or to talk to a mortgage broker about home loan options that are in your best interest, call us on 13 LOAN (or +61 2 9249 3739for international callers) or email us the form on this page and we will return your contact 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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