Speak to us today on 1300 364 751

No Frills Loans

Is a No-Frills Loan Right for You?

Home loans can offer a full suite of benefits and options for borrowers, but not every borrower needs a lot of “frills” in their mortgage. For these borrowers, a basic no-frills home loan is a better choice. These loans have four main features*:

  • A low ongoing interest rate for the life of the loan
  • The flexibility to make extra principal payments at any time to help repay the loan early
  • Redraw access to additional repayments
  • Choice of payment terms such as weekly, biweekly and monthly

No-frills loans offer good value for the money if you’re on a limited budget with little spare cash and do not need the extra features or flexibility that other types of home loans may offer. There are two types of no-frills loans to choose from:

  • The basic variable home loan has the lowest ongoing rate of interest.
  • The standard variable home loan has a slightly higher interest rate, but has more options such as allowing higher repayments to be made with the benefit of a redraw facility should you wish to later draw back those extra payments. The standard variable loan may also have a linked interest saver /offset account attached.

Restrictions may apply on some options such as direct salary crediting and 100% Offset Savings Accounts .

You can choose to pay weekly, fortnightly or monthly.

Basic Home Loans offer good value for moneyif you are on a limited budget with little spare cash and do not need the extra features or flexibility that other types of home loans may offer.

  • A Basic Variable Home Loan has the lowest ongoing rate of interest but has few options compared with a Standard Variable Loan.
  • A Standard Variable Home Loan has a slightly higher interest rate than a Basic Variable, but has more options such as allowing higher repayments to be made with the benefit of a redraw facility should you wish to later draw back out those extra payments. A Standard Variable loan may also have a linked Interest Saver / Offset account attached.
phone
click-here