If you are looking for a simple no-frills home loan with a low interest rate and minimal fees, a basic home loan is a great option. This type of loan provides a path to owning your home in a shorter amount of time and without additional products such as linked credit cards or redraw facilities. Credit cards and redraw facilities can increase the size of your mortgage as they are loan facilities and although they offer convenience, by not having these facilities the size of your loan can only go down. In return for a lower interest rate and minimal fees, basic home loans have fewer features and can be less flexible than other loans. Some lenders may give you the option to pay for extra loan features if a time comes when you need them. There may also be fees and charges if you decide to switch loans or lenders, or pay off the loan sooner.
