The basic variable home loan will normally allow you to pay of as much or as little as you like and will also allow you to redraw extra payments you have made. If you have low borrowings and this is all you need then a basic home loan may be a perfect fit for you.
Before deciding on the basicloan it would be worthwhile ensuring you taking a look at the features that may only be available to a standard variable loan. Offset accounts, credit card auto sweeps can be great tools, but they are certainly not needed by everyone. Infact most people who have an offset account today do not probably use it to the maximum benefit anyway. But the basic home loan does not usually come with an offset account, a Do you need the features that come with a standard variable rate loan or will you be paying for something you are not going to use? What features will you require to support your long term strategy? For example investors or first home buyers might require an offset account attached to their home loan.
In our first home ownerexample the use of an offset account could save you thousands of dollars per year in tax, check out our strategy page on how we might use different features.