Variable rate home loans

Variable rate home loans offer flexibility, handy features and some of the most competitive rates on the market.

Home Loan Offer

loans.com.au Zip Home Loan

3.68 % p.a.

variable rate

3.70 % p.a.

comparison rate

Home Loan Offer

Appy for the loans.com.au Zip Home Loan and get a competitive variable rate mortgage for owner occupiers that comes with a no fee debit card with a $5,000 limit.

  • Interest rate of 3.68% p.a.
  • Comparison rate of 3.70% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $250,000
  • Max borrowing: $2,000,000
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Compare variable home loan rates

Rates last updated October 15th, 2018
$
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.68%
3.70%
$0
$0 p.a.
80%
A competitive variable rate mortgage for owner occupiers that comes with a no fee debit card with a $5,000 limit.
3.59%
3.59%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.64%
3.66%
$0
$0 p.a.
90%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
3.57%
3.58%
$0
$0 p.a.
80%
Get a very low interest rate and pay fewer fees. Enjoy a fast online application process and add a 100% offset account for $10 a month.
3.64%
3.66%
$0
$0 p.a.
80%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2 million from a convenient online lender.
3.68%
3.82%
$0
$10 monthly ($120 p.a.)
80%
Get double Velocity Frequent Flyer Points with this mortgage to spend on flights and more (for a limited time, subject to eligibility requirements). Redraw facility available on this variable rate home loan. Competitive interest rate.
3.59%
3.62%
$0
$350 p.a.
90%
Get a low variable interest rate and buy a property with just a 10% deposit. 100% offset account attached.
3.54%
3.58%
$0
$0 p.a.
80%
Get a competitive rate, save on fees and access a 100% offset account plus redraw facility. $900 cashback offer.
3.64%
3.64%
$0
$0 p.a.
70%
A low interest rate home loan with no application or ongoing fees.
3.54%
3.57%
$0
$0 p.a.
80%
A competitive variable interest rate product aimed at refinancers looking to switch to a lower rate.
3.68%
3.70%
$0
$0 p.a.
80%
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments.
3.64%
3.78%
$0
$10 monthly ($120 p.a.)
80%
Earn double Velocity Frequent Flyer Points on your mortgage for a limited time (subject to eligibility requirements). Plus, access a 100% offset account to save on interest.
3.74%
4.13%
$0
$349 p.a.
90%
Get a sharp rate plus package discounts and a 100% offset account.
3.79%
3.79%
$0
$0 p.a.
80%
Access an offset account and pay no application or ongoing fees on this special variable rate for owner-occupiers.
3.69%
4.12%
$0
$395 p.a.
80%
Unlock a range of savings with this competitive package home loan offer. Offset account and redraw facility included.
3.70%
3.70%
$0
$0 p.a.
70%
Get a discount for keeping your LVR at 70% or below with this innovative online lender.
3.72%
3.72%
$0
$0 p.a.
90%
New customers can get a discounted variable rate and a fee-free redraw facility. NSW, QLD and ACT residents only.
3.49%
3.52%
$500
$0 p.a.
95%
This mortgage combines a very sharp interest rate with a 100% offset account and it's available with a 5% deposit.
3.84%
3.84%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a free redraw facility with this innovative online lender.
3.64%
3.64%
$0
$0 p.a.
70%
A basic variable home loan that offers a competitive interest rate with no application fees and no ongoing fees.
3.75%
3.75%
$0
$0 p.a.
70%
Pay no application or ongoing fees and get a flexible loan with the ability to split up to 6 times.
3.74%
3.74%
$0
$0 p.a.
80%
A basic owner-occupier home loan with a low variable rate that requires a 20% deposit.
3.72%
3.74%
$0
$0 p.a.
80%
Save on interest by taking advantage of a 100% offset account along with no ongoing fees or application fees.
3.72%
4.10%
$0
$395 p.a.
80%
New borrowers or refinancers can get a discounted rate with this package loan. Bonus $1,500 cashback for refinancers.
3.99%
4.13%
$0
$10 monthly ($120 p.a.)
80%
A competitive variable rate home loan with no application fee.
3.85%
3.85%
$0
$0 p.a.
80%
Pay no application and ongoing fees with Macquarie Bank Basic Home Loan. Split and redraw facilities included.
3.69%
4.08%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
4.08%
4.09%
$0
$0 p.a.
90%
Low-fee investor mortgage with a partial offset account. 10% deposit option available.
3.81%
3.81%
$0
$0 p.a.
80%
A home loan with a competitive rate and plenty of handy features. This product comes with a 100% offset account.
3.88%
3.89%
$0
$0 p.a.
90%
Save on interest with a free 100% offset account and buy your property with just a 10% deposit.
3.67%
3.69%
$0
$0 p.a.
80%
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
4.04%
4.07%
$0
$0 p.a.
90%
For a limited time, pay no application or settlement fees. You can also take advantage of a free redraw facility.
3.77%
3.79%
$0
$0 p.a.
90%
Buy your home with just a 10% deposit, few fees and a reasonable interest rate.
3.76%
4.15%
$0
$395 p.a.
90%
A high maximum LVR home loan with redraw facility and additional payments. Get this mortgage with a 10% deposit.
3.99%
3.99%
$0
$0 p.a.
70%
Investors with a 30% deposit can get this low rate loan to fund their property portfolio.
3.89%
3.91%
$0
$0 p.a.
80%
This variable rate loan keeps the features simple and fees low. This loan is offered by a 100% online lender.
3.87%
3.89%
$0
$0 p.a.
95%
A low deposit mortgage for aspiring home owners. Fees are low and you can make extra repayments.
3.91%
3.92%
$0
$0 p.a.
80%
Investors can go from application to approval in as little as 20 minutes with this innovative online lender.
4.13%
4.13%
$0
$0 p.a.
80%
A competitive discounted variable rate home loan. 0.33%p.a. Discount Offer for new Owner Occupier Loans.
3.62%
3.62%
$0
$0 p.a.
95%
A low deposit mortgage with a competitive rate and plenty of flexibility. QLD residents only. Eligible borrowers can get a 15% discount on home and contents insurance for the life of their loan.
3.74%
3.74%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a redraw facility and flexible repayment schedule.
4.29%
4.31%
$0
$0 p.a.
80%
Investors will pay no application or ongoing fees for this interest-only loan.
3.74%
3.74%
$0
$0 p.a.
110%
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, Qld and ACT only.
4.65%
5.02%
$0
$395 p.a.
95%
No application fee and 100% offset account. Refinance to this loan and you could get $1,500 cashback.
5.58%
5.65%
$350
$0 p.a.
90%
Purchase land to build on or hold as an investment and pay no monthly fees.

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Home Loan Offer

loans.com.au Zip Home Loan

3.68 % p.a.

variable rate

3.70 % p.a.

comparison rate

Home Loan Offer

Appy for the loans.com.au Zip Home Loan and get a competitive variable rate mortgage for owner occupiers that comes with a no fee debit card with a $5,000 limit.

  • Interest rate of 3.68% p.a.
  • Comparison rate of 3.70% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $250,000
  • Max borrowing: $2,000,000
Go to site
Promoted

Variable rate offers

How do variable home loans work?

A variable rate home loan has an interest rate which can change over time. Your lender might cut the rate due to economic conditions, or decide to raise it. This means over the course of a year, your home loan rate (and your periodic repayments) might increase or decrease. Fixed rate loans don't change during the fixed period, offering more certainty but less flexibility. Variable rates tend to be lower than fixed rates and may have fewer fees.

How do I compare variable rate loans?

Watch: Should I get a fixed or variable rate loan?

Consider the following factors when comparing variable home loan rates:

  • Interest rates. A lower interest rate means lower repayments. This is easily the biggest factor. It's also a good idea to use a repayment calculator to find out what your repayments will look like with the given interest rate, and also add an extra 1% on top of this to see what your repayments would be should interest rates rise.
  • Fees. A variable rate home loan can come with a range of fees, including upfront application fees or ongoing fees, as well as fees to use features including offset accounts or redraw facilities. Ensure that the fees justify the interest rate and features you'll receive with the loan. This is why you should always pay attention to a loan's comparison rate, which takes into account its interest rate plus fees.
  • Features. What features you choose to add to your comparison will depend on how you want to use your home loan. If you prefer to have your salary paid into your home loan to minimise your interest charged, you might want to look for an offset account. If you want a home loan that allows you to make unlimited additional repayments, you might want to look for home loans with a free redraw facility.
  • Eligibility. Different lenders will put limitations on what types of properties they will finance and the types of borrowers they will accept. Ensure the loans you're comparing are available for your situation, including the type and size of the property, your income source and your loan purpose.

The pros and cons of variable rate loans

To decide if a variable rate is suitable for you, start by weighing the benefits and risks. This depends heavily on your property needs and strategy.

Pros

  • Features. Many variable rate home loans come with useful features, such as the ability to make additional repayments, offset accounts and redraw facilities. It's harder to find a fixed rate with these features.
  • Easy to refinance. When you opt for a variable rate loan, you have the flexibility to refinance with another lender in order to secure a more competitive deal. With a fixed rate product, however, you need to pay high discharge fees to exit the loan.
  • Falling interest rates. If interest rates fall a variable loan will save you money if your lender decides to pass on the cut (they often do).

Cons

  • Interest rate rise. An interest rate rise on a variable rate home loan would make your repayments more expensive, and could make it more difficult to service your loan.
  • Difficult to budget. If your rate is fluctuating regularly, it can be difficult to plan an accurate budget. You might have less money to allocate to other expenses if your home loan repayment rises.

Read more on fixed versus variable rates

Types of variable rate home loans

Couple talking with a brokerThere are a few specific types of variable mortgage rates, with some important differences between them:

  • Basic variable rate home loans. A basic variable rate home loan does away with some features offered on the home loans above, such as 100% offset accounts, but in return offers lower interest rates and fees. You can read more about them below.
  • Full-featured variable loans. Full feature home loans offer a range of extras and useful features, including 100% offset accounts, redraw facilities and more.
  • Variable rate package home loans. Package home loans offer discounted interest rate and fees in return for bundling your credit card, savings accounts and other financial products with your home loan lender. They generally also charge an annual fee, unlike some other variable rate home loans.
  • Introductory rate home loans. Introductory rate home loans are variable rate home loans with a special discounted rate which usually applies for the first year, after which a regular variable rate applies. These can be suited to first home buyers or others trying to minimise interest costs in the first year.

If you're looking for a more specialised type of variable home loan like some of the ones listed above, you should consider contacting a mortgage broker to get some free, expert guidance.

More questions about variable rate mortgages

Choosing the right type of mortgage is complex. Here are few more specific questions and scenarios that might be relevant to you.

Compare more home loan options here

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Home Loan Offers

Important Information*
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 3.59% p.a. and a 3.59% p.a. comparison rate.

loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.64% p.a.
comp rate of 3.66% p.a.

Tic:Toc Live in Loan Variable Rate - Principal & Interest

Get a very low interest rate and pay fewer fees. Enjoy a fast online application process and add a 100% offset account for $10 a month.

HSBC Home Value Loan - (Owner Occupier P&I)

Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.

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18 Responses

  1. Default Gravatar
    NHAugust 30, 2018

    I am wanting to consolidate all my outstanding into my home loan. I also want to change my financial institution to have a better lower interest rate. Also will it be better to have variable or fixed with what I am wanting to do? Please can you help?

    Thanks

    • finder Customer Care
      JoshuaAugust 30, 2018Staff

      Hi NH,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Let me address your concerns one by one.

      1. I am wanting to consolidate all my outstanding into my home loan.

      You may want to consider refinancing your home loan to consolidate debt. This type of home loan allows you to pay out your credit card and personal loans under your mortgage. Instead of paying off multiple debts, you pay off all of your debts with one home loan repayment each month. This also means your debts are only charged at a home loan interest rate – which can be much lower than a credit card or personal loan interest rate. To learn more, please read this guide.

      2. I also want to change my financial institution to have a better lower interest rate.

      Please refer to the guide I shared with you above. When you’re on the page, please refer to the table under the subheading “Which lenders offer debt consolidation options when refinancing?” By doing so, you will see different financial institutions that might be able to help you.

      3. Also will it be better to have variable or fixed with what I am wanting to do?

      While we can’t provide personalised recommendations, it would be a good idea to know the difference between the two. We have a guide to help you with this.

      On that page, you will know more about variable and fixed interest home loans, which include their advantages and disadvantages.

      Finally, please speak to a mortgage broker to help you explore your different options. They have the right skills and knowledge to ensure you make the right decision.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  2. Default Gravatar
    SafiaOctober 17, 2017

    How many financial institution offer construction loans and what are things to look out for before choosing a financial institution.

    • Default Gravatar
      MariaOctober 17, 2017

      Hi Safia,

      You may want to check out lenders on this page on Construction Loans.

      It also includes tips and information on how to choose a construction loan and some other frequently asked questions which you can find at the bottom of the page.

      Before applying, please ensure that you meet the eligibility criteria and requirements and to read the details, as well as the relevant Product Disclosure Statements/ Terms and Conditions of the option before making a decision and consider whether the product is right for you.

      Once you’ve chosen a lender, you may click on “Go to site” to be directed to their main website where you can start your application.

      Best,
      Maria

  3. Default Gravatar
    JamesAugust 3, 2017

    So I just re-financed my home to go to a cheaper rate at a diffrent bank and my property got valued at 600.000 when I only have 300,000 left on property so where does the other 300,000 go.can I take some for me and put in on top of the loan for eg: 50k for me then loan will be 350,000 instead of 300,000 since I don’t need the whole 600,000 to move over

    • Default Gravatar
      LiezlAugust 3, 2017

      Hi James,

      Thanks for your question.

      The difference of $300,000 is your home equity which you can use for investment purposes or for a wide variety of reasons such as pay up-front university fees for your children, for an extended overseas holiday, or home repairs and cosmetic renovations. You may find our guide on home loan refinancing on this page helpful.

      Cheers,
      Liezl

  4. Default Gravatar
    CarolJune 17, 2016

    Hi If I reach retirement age and still have a home loan of say $100000, what is the longest term you can pay interest only repayments?
    Thanks
    Carol

    • finder Customer Care
      MarcJune 20, 2016Staff

      Hi Carol,
      thanks for the question.

      This will depend on the lender, as each will have their own unique lending criteria. It might be a good idea to consult a mortgage broker to find out the longest term available to you for your situation.

      I hope this helps,
      Marc.

  5. Default Gravatar
    JonSeptember 30, 2014

    Hi, how do i search for interest only loans?

    • finder Customer Care
      ShirleyOctober 1, 2014Staff

      Hi Jon,

      Thanks for your question.

      Please see this page for a comparison of interest free home loans.

      For future reference, you can use the search tool (with the magnifying glass) on the top right hand corner of this page to search for certain comparisons.

      Cheers,
      Shirley

  6. Default Gravatar
    JeffAugust 19, 2014

    My bank charges 5.98% variable rate , am I in my right to ask for a better rate like other lenders are give. We have a offset account and does that make difference.

    • finder Customer Care
      MarcAugust 20, 2014Staff

      Hi Jeff,
      thanks for the question.

      You’re completely within your rights to ask for a better rate, and starting a comparison of what else is out there in the market already is a great place to start. If you let your lender know that you’re unhappy with your rate and thinking of refinancing, there’s a range of incentives they can offer for you to stay, including cash and decreased rates. It never hurts to ask.

      I hope this helps,
      Marc.

  7. Default Gravatar
    MeganJuly 11, 2014

    If I choose a variable loan am I locked into that loan for a certain amount of time or can I opt out or change my loan whenever I choose???

    • finder Customer Care
      ShirleyJuly 14, 2014Staff

      Hi Megan,

      Thanks for your question.

      It usually depends on the home loan you’ve committed to. Some lenders could charge a break fee if you leave the loan early and some may not charge this fee when you’ve stayed with the loan for a certain period of time.

      You can check these fees by clicking on the ‘fees’ tab on our home loan reviews, and you can check the PDS of the product to see how long you may need to commit to the loan.

      Generally variable rate home loans are more flexible than fixed rate home loans in terms of exiting – best of luck!

      Cheers,
      Shirley

  8. Default Gravatar
    kateAugust 6, 2013

    my home has just been valuaterd at 800000
    what is the most i can borrow and best interest rate

    • finder Customer Care
      ShirleyAugust 6, 2013Staff

      Hi Kate,

      Thanks for your comment.

      Please use our borrowing power calculator to give you an indication. You can then compare our featured home loans on this page.

      Cheers,
      Shirley

  9. Default Gravatar
    jkJune 26, 2013

    i want to take combination of fixed and variable home loan for 30 yrs. loan amount over $350000.

    what is the maximum period for fixed rate i can opt for in this scheme. i want to split amount in 50 – 50 %.

    thanks and regards

    jk

    • finder Customer Care
      ShirleyJune 26, 2013Staff

      Hi Jk,

      Thanks for your comment.

      After you’ve chosen a loan that you think might be suitable for you, our review will state the maximum period that you can fix or split your interest rate.

      Cheers,
      Shirley

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