This is an email question from Vicki in Tuart Hill. I have heard the term basic variable home loan, what is it?
A basic variable home loan is generally a discounted home loan without all the extras some home loans may have. While they generally have a great interest rate, they may not have other home loan features like an offset account, a no annual fee credit card or application fee discounts. Some basic variable home loans do though, as all lenders offer different mortgage products, so it is worthwhile checking with a mortgage broker, the different options available to you.
With most basic variable home loans though, you can pay as much into them as you want, without penalty and have those extra funds as redraw, should you need them in the future. Some banks or lenders may have a fee to redraw from your home loan, and may have a deferred establishment fee if you pay out the home loan completely within a certain period of time (all lenders have different rules). Some basic variable home may also have a monthly fee, which can range from around $8 to $12 a month.
Basic variable home loans can be a good option, the flexibility of being able to pay the loan down faster, with a great interest rate. You may not need all the extras that a fully featured home loan may offer (like a bank or lenders professional packaged home loan), and may save yourself from paying unnecessary fees, like an annual fee.
http://www.mortgagefacts.com.au/
No comments:
Post a Comment