Basic Variable Rate - This is one of the most popular loans of all. A very basic home loan, with the lowest running costs. It has no bells and whistles or special features but a lower interest rate. You also still have the option of extra repayments off your home loan and redrawing them when or if the need arises. The basic variable interest rate will always be lower than standard loans due to having the least features. The pitfall of this loan is there are usually penalties for early repayment. The interest rate is variable and can alter with rate fluctuations. The benefits are the lower than normal interest rates, extra repayments are allowed and regular payments may help with budgets.