Basic Variable
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Variable rate home loans interest rate follows the movements of the official cash rate that is determined by the Reserve Bank of Australia. Variable home loan interest rates go up or down. The advantage of variable rates is that they are more flexible and usually lower than the fixed rate.
Basic variable interest rates are cheaper than the standard variable interest rate but may have less features than a standard home loan. When looking at this sort of product you should also investigate fees. The rate might look attractive but yearly or monthly account fees and extra charges might not make it as competitive.
The features you might lose are things like an offest account, the ability to split the loan and redraw. These features are quite valuable to many borrowers so you should carefully consider if you can live without them.
