Basic Home Loans
Often these loans come with a discounted interest rate and low up front and or ongoing fees unlike fully featured loans that offer 100% offset Accounts, free redraw, fee free accounts and credit cards.
There are some excellent basic home loans about that allow you to reduce your mortgage just as effective as a loan with all the bells and whistles. Below is a list of features you should look out for.
Ability to make extra repayments
Nil or low up front and ongoing fees
Competitive interest rate compared to professional packaged discounts
The ability to redraw funds from the loan account without additional cost - aka redraw fees
Loans that allow for direct salary crediting salary crediting
Competitive interest rate and lower fees.
Extra payments can be withdrawn without fees with some lenders.
Can be just as effective at reducing interest paid and loan term as fully featured home loans.
Overall cost of loan is less than those with a offset facility.
May have upfront and ongoing fees.
Redraw facility may have redraw fees and minimum redraw amounts.
Not as flexible as professional packaged loans.