Basic Variable

Basic variable is a special loan program offering lower interest rates than the standard variable rate loan. In exchange for the lower fees, many of the common features are taken away, including mortgage offset, redraw facility, and early repayments. Although initially cheap, the basic variable rate often comes with extra costs such as monthly instead of annual fees, higher upfront fees, and fines for exceeding the limits. For example, the interest you save by making additional repayments can be canceled out by the early repayment fines imposed by your bank.