Basic Variable Rate Home Loans

Basic variable rate home loans (also known as “No Frills” or “Vanilla” home loans) are the simplest home loan products available and typically come with few features. These home loans have lower interest rates when compared to standard variable rate home loans to compensate for the lack of included features.

Basic Variable Home Loans

Basic Home Loan Advantages

  • Lower interest rates compared to standard variable rates.
  • Due to their variable nature, if the interest rates fall, so too will your loan repayments.
  • Extra repayments are allowed, which can reduce length and cost of your mortgage.
  • Depending on your level of thrift, not having the ability to Redraw, can remove the temptation to spend any extra funds that you have paid off the home loan.

Basic Home Loan Disadvantages

  • Due to their variable nature, if interest rates rise, so too will your loan repayments.
  • Less flexible.
  • Fewer features and lack Offset Accounts & Redraw

Most Suitable For

Basic home loans by their simple nature and lower rates make them particularly appealing to first home buyers, for anyone on a tight budget or whoever just wants a no fuss home loan.

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