Tuesday, March 22, 2005

Basic Variable Rate Home Loan

Features of Basic Variable Rate Loans

StandardVariable rate loans offer flexibility, low fees and moderate interest rates. With a Basic Variable Rate Loan you generally trade flexibility and low fees for a slightly lower interest rate.

Less important now that interest rates are rising again is that if there is a reduction in official interest rates, your repayments also reduce.

Other useful features can include a redraw facility, direct salary crediting, portability and repayment options. Most Basic Variable Loans do not include offset accounts or a split loan facility. Account keeping fees are usually higher than Standard Variable Loans and so are Redraw fees.

Basic Variable Rate Home Loan continued here...