With a low variable interest rate of 3.86% for owner occupiers (or an even lower special variable rate), the Basic Home Loan is a loan that will suit everyone from first home buyers through to seasoned property investors.
You can borrow up to 80% LVR, which means that for first home buyers and investors, the minimum deposit required is 20% and you will need lenders mortgage insurance for anything over an LVR of 80%. The maximum loan term for the Basic Home Loan is 30 years.
There are a number of repayment options that come standard with the Basic Home Loan. For instance, you can choose your repayment frequency to suit your payday and not the banks. Options include weekly, fortnightly and monthly repayments. There is also the option to pause repayments if you need, though for a 'family pause' you need to have the loan for a full 12 months and have an LVR of at least 90% to be eligible.
There isn't an offset account attached to the Basic Home Loan but you can make extra payments and there is a redraw facility available if you decide you need the money later on.
Who it's good for:
Value seekers. Why pay a higher interest rate when the Basic Home Loan has all the essential features you want in a home loan?
Keep in mind, no offset account is available with this mortgage.