Basic variable home loans only cover the basic home loan features without the bells and whistles. However, it does offer lower interest rates than a standard variable home loan. Basic variable home loans are usually quite popular with first home owners who don't need all the features of a standard variable home loan, but want a competitive interest rate.
Advantages of a basic variable home loan
• Lower interest rate than standard variable home loans
• Repayments are lower than standard variable home loans
• If interest rates drop, repayments also drop
• Most basic variable home loan products allow the borrower to make extra repayments
• Most basic variable home loan products have terms of 25 to 30 years
Disadvantages of a basic variable home loan
• Fewer features and less flexibility
• Many basic variable home loans cannot be used in conjunction with other loans and are not portable
• You may have to pay an extra fee for additioanl loan features
• If interest rates rise, repayments also rise
Please use our home loan calculators to get an idea on your borrowing capacity, monthly loan repayments and stamp duty fees. Alternatively, speak to one of the mortgage brokers at Intellichoice on 1300 55 10 45 for more information about our various home loan products and whether a basic variable home loan is suitable for your needs. With access to over 800 home loan products and 35 mortgage lenders, our mortgage brokers will find a home loan to suit your needs.