Basic home loans are a type of loan that trades off flexibility and in return offers a low ongoing interest rate, lower or no ongoing fees and often a reduced or waived application fee.

This type of loan has minimal features and generally doesn’t offer an offset account, repayment holidays, ATM card, cheque book or Bpay. If you are after a simple loan that is easy to use, then the basic home loan would be well suited to you.

Which lenders have basic loans?

The interest rates and fees that can be offered for a basic home loan will vary from lender to lender, however all the major banks offer similar features for their basic loans. Some common basic loan products are:

  • CBA 3 year special rate saver
  • Rams- Basic home loan
  • Westpac- Flexi first option
  • St George- Basic home loan
  • Suncorp- Back to basics
  • ANZ Simplicity plus
  • NAB Base variable
  • And many more…

Finding the cheapest basic loan

It can be a difficult process to find the cheapest type of loan best suited for you as there are many lenders to choose from. However, there are several things that you need to consider when choosing the right finance to take.

For small loan amounts the fees are more important than the interest rates, so you should check for any hidden fees, particularly ones associated with settlement such as legal fees and settlement attendance fees. You should also look out for any redraw fees that the lender may include in their product. Lastly, if you are a first home buyer, some lenders will be able to waive the application fee.

Call us on 1300 889 743 or enquire online, as we have software that can quickly compare offers from over 30 lenders to find you the best deal.

Who is a basic loan suitable for?

Basic loans do not suit all borrowers, in particular they often do not have the same special interest rate discounts for people borrowing over $1,000,000. Simple loans are best suited to:

  • Loan amounts that are under $250,000: With a basic loan you can get an interest rate below the standard variable rate even though you don’t qualify for a professional package discount.
  • Don’t need bells and whistles: Why pay the annual package fee for a professional package loan if you are not going to use all of the features it can offer, such as a credit card. That way with a basic loan you will only be paying fees for what you need and want, at a lower cost.
  • People who don’t want to change banks: Often with other loan types the loan comes as a package with a cheque account and credit card. Obviously if you don’t want to change banks then there is no point in getting these additional products with your loan.
  • Simplicity: Anyone who finds dealing with their money to be too complicated and just wants a simple, easy to use solution should apply for a basic loan.

Apply for a basic home loan

Please call us on 1300 889 743 or enquire online if you wish to talk with a mortgage broker who can give you expert advice on basic home loans.

  • Optimus

    Aren’t the basic home loans with the lowest interest rates the cheapest?

  • Hi Optimus,

    Home loan interest rates are important but you’ll also need to consider the cost of the mortgage, mainly the cost of LMI and any other hidden fees and charges. This is because you may get a low interest rate with one lender but you may have to pay a lot in LMI and also have high charges if you refinance in the future. You can potentially save thousands of dollars over the term of your mortgage by choosing the right lender and considering LMI as well as the comparison rate.

    If you want to get an estimate of the amount of LMI you’ll likely have to pay, you can get it here:

  • Greene, S

    I’m getting a home loan for $350,000 so am I better off with a basic home loan or with a professional package?

  • A professional package isn’t a loan type but an overarching product that offers a range of discounts that usually come with an annual fee of $300 to $400. These discounts can include interest rate discounts, lower pricing on personal loans, as well as premium service from the lender.

    Generally, if you don’t need a range of bank products or you don’t want to switch to a new bank then a basic home loan would be okay. However, if either one of these apply to you and since you’re also borrowing more than $250k, a pro pack can be the way to go.

  • botello

    Is it possible to get a professional package on a $200k loan amount?

  • It is possible to get a professional package on a $200k loan amount, however, it’s usually available to people who are borrowing a larger amount of money (generally more than $250k). Please make sure you research and weigh in the pros and cons to this before you make a decision.

  • Farber

    How much fees do I need to pay annualy to keep a pro pack?

  • Hi Farber.

    The annual fees for a professional package range from $300 to $750 depending on what type of professional package you apply for i.e. a standard home loan package or a private banking package for high net worth borrowers.

  • haydenn

    What exactly does the comparison rate include to make it higher and for it to be used as a guide?

  • A comparison rate is the true cost of a home loan arising from interest charges and other credit fees and charges such as valuation fee, settlement fee and establishment fee. However, its calculation doesn’t include some factors such as break costs, redraw fees and government stamp duty. Please check out this page to get a clear understand of what a comparison rate is and how it should be used: