Basic Variable Home Loan

A basic variable home loan is a ‘no frills’ loan with a competitive low-interest rate and minimal/no fees. This type of loan contains only the essential features, and may not have extras such as access to an offset account.

As this is a variable loan, repayments will fluctuate with rises and falls in the interest rate, and these are determined by your lender or changes based on the monthly Reserve Bank of Australia (RBA) Meetings. Compared to a Standard Variable Home Loan, you’ll find that a Basic Variable Home Loan will have a lower interest rate, in some cases, 1-2% lower than the Standard Variable Rate.


  • Lower interest rate
  • Lower repayments
  • Offers extra repayments
  • Redraw facility often provided


  • Less flexible than standard variable home loans
  • Most won’t have an offset account

Is a Basic Variable Home Loan right for me?

A Basic Variable Home Loan is great for people who want to take advantage of the lower rates and costs so that they can repay their loan quickly.

If you are a first home buyer or simply after an easy to understand mortgage product, you may also find this loan appealing.

On the other hand, if you are looking for flexibility in a home loan, with additional features such as offset facilities, redraws, and the ability to split your loan, then a standard variable rate home loan may be a better option.

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