Basic Variable Home Loans
Basic Variable Home Loan
What is a Basic Variable Home Loan?
A Basic Variable loan is quite simply that, basic. Often referred to as a “no-frills” product a basic home loan usually just a home loan with no additional products attached. The benefit of a basic loan, however, is that it usually comes with a low interest rate so it can be extremely cost effective.
While there are often no ongoing fees with a basic loan product you may be charged for additional account keeping transactions such as accessing redraw. Another factor to consider is that basic loans usually do not come with an offset account facility.
The mortgage holder most suited to a Basic Home Loan is the First Home Buyer given their position is usually simplistic and not in need of multiple products. For a mortgage holder with multiple properties, several loan facilities and a suite of different banking products, a basic loan is unlikely to be suitable.