Basic Variable Home Loan:
Most banks offer this type of loan facility. It is ideal for first home buyers, investors and applicants looking to re-financing their current home loan. This product is a no frills facility with less flexibility than standard variable loans. However, has a highly competitive interest rate. The rate offered by these loans is lower than that of the standard variable loans. Over the long term this type of loan could save you thousands of dollars in interest repayments.
This basic home loan still offers a variety of features such as:
- A choice of principle and interest or Interest Only repayment option
- You can also make additional loan repayments without incurring a penalty
- You may also have a re-draw facility, accessing your payments made in advance
The interest rate is variable and will be subject to change should interest rates increase or fall.
This product usually comes with a monthly account keeping fee and a re-draw fee when withdrawing money. The minimum re-draw amount is usually $2,000.
Applicants may however, add features to this facility by paying additional fees.
