The Basic Variable Home Loan is a variable loan product that is not as highly featured as the Standard Variable home loan. The biggest advantage of this home loan is it’s rate of interest.

Basic variable loans have a relatively low interest rate compared to other variable loan products. Therefore, the loan repayments on the Basic Variable Home Loan will generally be lower than those on a Standard Variable Home Loan.

However the Basic Variable Home Loans also come with fewer features and less flexibility.

For example, many basic variable loans cannot be used in combination with other loans and are not portable. In some circumstances borrowers holding the Basic Variable Home Loan are offered the opportunity to take on additional loan features for an extra fee.

Like all variable loans, the interest rate and your repayments can vary over the term of the loan and will be generally tied to the interest rate changes by the Reserve Bank of Australia