10 cheapest variable rate home loans for December 2017

Richard Whitten 6 December 2017 NEWS

Happy couple on laptop

With lenders cutting rates and the Reserve Bank continuing to hold, it's a borrower's market.

Details of the home loans featured on this page were correct for 6 December 2017. Check out all our cheapest loans here

More than a few lenders are cutting rates at the moment. And even if these cuts are concentrated mainly on fixed-rate products variable rate loans remain the most competitive products on the market.

We've rounded up the 10 cheapest variable loans available on finder in December 2017. Rather than focusing solely on interest rates, we've added several criteria to find variable loans that will appeal to a maximum number of ordinary home buyers. The loans featured in this list:

  • Have a minimum loan amount of $150,000 or lower.
  • Have a maximum loan amount of $500,000 or higher.
  • Exclude non-variable, investor or specialised products.

Please note that all the information on this page is correct as of 6 December and is subject to change.

Scroll through the table to see our cheapest variable loans, or keep reading below to learn more about each home loan.

LoanInterest rate
Tic:Toc Live in Loan Variable Rate3.58%
loans.com.au Essentials Variable3.64%
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier, P&I)3.64%
State Custodians Low Rate Home Loan with Offset - LVR up to 80% (Owner Occupier, P&I)3.64%
HSBC Home Value Loan - Resident Owner Occupier only, P&I3.65%
IMB Budget Home Loan - Special LVR <=90% (Owner Occupier, P&I)3.69%
Greater Bank Great Rate Home Loan - Discounted Variable ($150K+ Owner Occupier) New Loans only3.74%
UBank UHomeLoan Variable Rate - Standard Variable Rate Value Offer (Owner Occupier P&I)3.74%
RACQ Mortgage Saver Special Home Loan3.74%
SCU Basic Variable Rate Home Loan3.77%

Tic:Toc Live-in Variable Rate

A low-rate, low-fee loan from Tic:Toc, the lender with a high-speed application process, might be a good option for purchasers. You can also add an offset account for $10 a month if you want to take maximum advantage of your loan.

  • Interest rate 3.58% (comparison rate 3.59%)

loans.com.au Essentials Variable

This owner occupier principal and interest loan is a basic, no-frills loan with a very sharp rate and limited fees, allowing you to save on monthly repayments.

  • Interest rate 3.64% (comparison rate 3.66%)

Newcastle Permanent Premium Plus Package loan

A discounted package loan with a competitive rate, an offset account, and further discounts on other financial products offered by the lender.

  • Interest rate 3.64% (comparison rate 4.03%)

State Custodians Low Rate Home Loan with Offset

State Custodian's Low Rate Home Loan with Offset really says it all in the name: most loans only provide an offset account on higher-rate loans. State Custodians offers the low rate, offset account and keeps fees to a minimum.

  • Interest rate 3.64% (comparison rate 3.67%)

HSBC Home Value Loan

International lender HSBC's Home Value Loan is a basic home loan that goes for the no-frills, low-rate, low-fees approach. For many borrowers who need nothing more this is the right combination.

  • Interest rate 3.65% (comparison rate 3.66%)

IMB Budget Home Loan

IMB keeps it simple with their budget home loan. It has a low rate, and if you opt for an owner occupier, principal and interest loan you won't have to pay the establishment fee.

  • Interest rate 3.69% (comparison rate 3.69%)

Greater Bank Great Rate Variable Home Loan

This loan has a competitive rate, a partial offset account and very low fees. You will need to be a resident of NSW, QLD or the ACT though.

  • Interest rate 3.74% (comparison rate 3.74%)

UBank UHomeLoan (Variable Rate)

With no application or ongoing fees and a sharp rate, UBank's UHomeLoan is a compelling and simple variable rate offer.

  • Interest rate 3.74% (comparison rate 3.74%)

RACQ Bank Mortgage Saver Home Loan

It's only available for Queensland residents, but this low-fee, low-rate variable home loan is an affordable option for borrowers in the sunshine state.

  • Interest rate 3.74% (comparison rate 3.74%)

SCU Basic Variable Rate Home Loan

SCU's simple variable loan does come with a few fees, but the rate is well below the market average and the ability to borrow up to 95% of a property's value (plus lender's mortgage insurance) makes this loan a worthy option for the right customer.

  • Interest rate 3.77% (comparison rate 3.81%)

Latest home loans headlines

Compare all finder's cheapest variable rate home loans here

Image: Shutterstock

Get more from finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
Go to site