One of the most popular loans.  The Basic Home Loan is Low Frills Loan with the lowest running costs - and less extras - so you pay a lower interest rate. Before you choose this loan make sure that you don't need any extras (such as fee free credit cards and accounts etc) and compare the costs of getting them separately.

Advantages

• Discipline - regular repayments help you with budgeting.
• The interest rate is always lower than traditional loans.
• Extra repayments are usually allowed.

Disadvantages

• Money held in normal savings accounts with the same institution will not reduce your home loan rates.
• The interest rate is variable and you are vulnerable to interest rate fluctuation.
• Other facilities such as loan redraw may not be available.