Who doesn’t want to save on the amount of interest they pay for their home loan?
It’s easy to see why low interest home loans are taken out by many of Choice Home Loans’ customers.
Essentially a ‘no frills’ home loan, a low interest or basic home loan has the lowest associated running costs because it simply has fewer bells and whistles.
The good news is that in return for a basic product, you pay interest at a lower rate than that applied to most other home loan options, allowing you to make extensive savings on your home loan repayments.
There are distinct advantages and disadvantages with this type of loan.
As the name suggests, the interest rate is consistently lower than for other home loans. However, as the interest rate is variable, you will be vulnerable to broader interest rate changes, just like any other borrower.
Facilities such as a loan redraw facility may not be available with a no frills home loan, but the option of making extra repayments to reduce your mortgage faster is usually available – and this can make a significant difference long-term.
Choice Home Loans recommends that before you choose a basic loan, you weigh up the pros and cons versus a product with a range of features, such as credit cards and linked accounts.
That said, low rate home loans are a consistently popular product among home buyers and remain an extremely affordable option.
To find out if a low rate home loan is the option for you, speak to one of our qualified Choice Home Loans brokers today. We can assess your individual needs and circumstances and locate the product that will best work for you.
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