Basic Variable Rate Loans

Break Down


  • Basic Home Loans, also know n as 'no frills home loans, Honeymoon Rate'
  • Offer you as the borrower a loan facility with a low interest rate, for a set period of time usually 6, 12 months, that it reverts back to the Standard Variable Rate Home Loan, at that period of time.
  • Usually a popular choice for first home buyers, as a basic home loan's rate interest rate is often half to one per cent below the standard variable rate, (depending on the particular lender)
  • Generally, the 100% offset facility feature is not available on the Basic Variable Rate Loans and the Redraw facility attracts a fee


Drawbacks


  • As with everything, there are draw backs, which include, limited features, less flexibility, and additional charges, if you decide to switch loans or pay the loan off sooner
  • The disadvantage of this facility is that often the lender will ~lock you~ for a period of upto 4 years after the initial period, meaning that any switch to another product may come at a cost



If you have any queries regarding any Finance, Mortgage or Insurance or any other matter,
please don't hesitate to contact our professional team at FLR Solutions on:

0415 280 555 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

or Simply fill out our enquiry form and we will promptly contact you


 

 

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