Basic Home Loan

What is a basic home loan?

Basic home loans are a simple and cheap loan with only basic features. Commonly known as a ‘no frills’ loan, they are usually priced approximately 0.6% cheaper than a standard variable.

Basic home loans are known for their basic features and are commonly referred to by lenders as:

  1. Simplicity loan
  2. Rate Saver
  3. Base Variable
  4. First Option
  5. Back to Basics
  6. Mortgage Simplifier
Basic home loan


Loan features

Basic home loans generally come without any savings accounts attached, credit cards, cheque books, or offset accounts. The features generally are a pay per use type. For example, most lenders will generally charge you a redraw fee if you wished to take out excess money you have put into this type of loan, with a minimum redraw amount to be taken out each time.

It is worth noting that some lenders offer free redraw with a basic home loan as long as this was done using online banking, without any minimum redraw amount to be taken out at any one time. Further, there are 2 lenders who offer a 100% offset account with a basic home loan.

Basic Home Loan FAQs

Home Loan Types

View our comprehensive list of home loan types

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Calculators

Use our unique & innovative mortgage calculators to find out how much you can borrow.

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At Mortgage Providers, we have access to all types of basic home loan products from different lenders. we are familiar with the features on offer as well as the pricing attached to each product. we can guide you through to the most flexible basic home loan product at the cheapest rate.