Compare Variable Rates from 3.54%

Rates and fees last updated on

Take advantage of a home loan with a flexible interest rate

A variable rate home loan is one of the most common types of home loans in Australia, and is also one of the most competitive products for lenders.

A variable rate home loan is a home loan product which has an interest rate which fluctuates up or down over time as your lender sees fit. Unlike a fixed rate home loan where the rate is locked in for a fixed term, the interest rate of a variable rate mortgage moves up and down in accordance with market changes.

HSBC Home Loan Offer

HSBC Home Value Loan - Resident Owner Occupier only, P&I

3.65 % p.a.

variable rate

3.66 % p.a.

comparison rate

HSBC Home Loan Offer

The HSBC Home Value Loan is a low rate with no monthly fees. Enjoy premium service with a dedicated HSBC Relationship Manager.

  • Interest rate of 3.65% p.a.
  • Comparison rate of 3.66% p.a.
  • Application fee of $0
  • Maximum LVR: 90%
  • Minimum borrowing: $50,000
  • Max borrowing: $7,500,000
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Compare variable home loans

Rates last updated November 21st, 2017
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Loan purpose
Offset account
Loan type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.65%
3.66%
$0
$0 p.a.
90%
Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.
3.64%
3.66%
$0
$0 p.a.
80%
A basic home loan with a competitive rate and low fees.
3.58%
3.59%
$0
$0 p.a.
80%
A competitive variable rate product with low fees offered by a 100% online lender.
3.69%
3.69%
$0
$0 p.a.
90%
A special limited time offer for owner occupiers. An IMB Transaction Account must be opened with this loan.
3.58%
3.58%
$0
$0 p.a.
70%
A low interest rate home loan with no application or ongoing fees.
3.54%
3.56%
$0
$0 p.a.
80%
Exclusive Offer to finder.com.au

This loan is exclusively available on finder up to and including 22 November (enquiries must be submitted by that date). This loan is for refinancers only. A basic but flexible low-rate loan for refinancers looking to save on repayments.

3.64%
4.03%
$0
$395 p.a.
80%
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.64%
3.66%
$0
$0 p.a.
80%
A home loan with a competitive variable rate, limited fees and plenty of flexibility.
3.54%
3.56%
$0
$0 p.a.
80%
For new home buyers only. No refinance option. A low interest variable home loan with no application fee and free redraws. Offer ends 30th Nov.
3.69%
4.01%
$0
$299 p.a.
95%
A loan with no application fee and borrow up to 95% LVR.
3.69%
3.72%
$0
$0 p.a.
80%
A low rate home loan with no ongoing fees.
3.78%
3.78%
$0
$0 p.a.
80%
A basic low-rate home loan that still offers some useful features.
3.62%
3.64%
$0
$0 p.a.
80%
Exclusive Offer to finder.com.au

This loan is exclusively available on finder up to and including 22 November (enquiries must be submitted by that date). This loan is for refinancers only. Switch from your current loan to this low-rate, flexible and feature-packed refinance special.

3.78%
3.79%
$0
$0 p.a.
95%
A no frills loan with a competitive rate and a maximum LVR of 95%.
3.79%
4.11%
$0
$299 p.a.
80%
A fully featured home loan with an offset account and discounts available.
3.74%
3.74%
$0
$0 p.a.
80%
Combine a low variable interest rate and free redraw with no application or ongoing fees.
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.
3.69%
3.75%
$600
$0 p.a.
80%
A low interest rate variable home loan with no ongoing fees.
3.72%
3.75%
$600
$0 p.a.
80%
A maximum 80% LVR home loan with no ongoing service fees and a linked transaction account.
3.72%
4.19%
$0
$0 p.a.
80%
Enjoy a variable 3 year introductory rate with the Bankwest Equaliser Home Loan.
3.72%
3.74%
$0
$0 p.a.
80%
Take advantage of a 100% offset account along with no annual or application fees.
3.64%
3.78%
$0
$10 monthly ($120 p.a.)
80%
A competitive variable rate home loan with flexible features. You can earn 30,000 Velocity Points for every $100k you borrow (for a limited time, subject to eligibility requirements).
3.74%
3.74%
$0
$0 p.a.
95%
A low rate home loan with no application or ongoing fees. Note that to be eligible for this loan you must be QLD resident.
3.74%
3.74%
$0
$0 p.a.
90%
A competitive variable rate with a redraw facility. NSW, QLD and ACT residents only.
3.77%
3.81%
$200
$0 p.a.
95%
A basic home loan with a low interest rate and a redraw facility available.
3.81%
3.81%
$0
$0 p.a.
80%
A home loan with a competitive rate and plenty of handy features.
3.73%
3.73%
$0
$0 p.a.
70%
A special low variable rate for owner occupiers with 100% offset account and no application or ongoing fees.
3.84%
3.84%
$0
$0 p.a.
110%
Requires a family member to act as guarantor. Discounted rate available with family pledge loans. Family pledge loans require no LMI and no deposit. NSW, Qld and ACT only.
4.09%
4.25%
$300
$10 monthly ($120 p.a.)
80%
Get a competitive investment home loan rate without expensive features you may not need.
3.96%
3.98%
$0
$0 p.a.
90%
Take advantage of a redraw facility, competitive variable rate and no application or settlement fees for a limited time.
3.97%
3.97%
$0
$0 p.a.
90%
A competitive variable rate home loan with no ongoing fees.
3.79%
3.80%
$0
$0 p.a.
80%
A competitive rate with no ongoing monthly fees or application fees.
3.97%
4.02%
$0
$0 p.a.
90%
A discounted interest rate home loan with no monthly fees.
3.97%
4.02%
$445
$0 p.a.
90%
Get a competitive rate without features you may not use.
3.99%
4.00%
$0
$0 p.a.
80%
A low-fee variable rate investor loan with a fast online application process.
3.99%
4.02%
$600
$0 p.a.
90%
Take advantage of a 0.60% discount on your rate, a 100% offset account and no ongoing fees.
3.99%
3.99%
$395
$0 p.a.
80%
A flexible low-rate variable home loan that lets you combine your loan with other financial products.
4.09%
4.11%
$0
$0 p.a.
80%
A low variable rate loan with no application or ongoing fees.
3.84%
4.58%
$445
$0 p.a.
90%
A two year discounted rate which reverts to an ongoing life of loan discount afterwards.
4.17%
4.21%
$600
$0 p.a.
95%
A competitive no frills home loan. 350K NAB Rewards Points offer available. Terms and conditions apply.
4.57%
4.94%
$0
$395 p.a.
95%
No application fee and 100% offset account.
3.68%
3.69%
$600
$0 p.a.
90%
Get a low variable rate along with some important basic features.
4.33%
4.33%
$363
$0 p.a.
70%
A variable home loan with $0 annual or monthly fees.

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Quickly compare some of today's popular variable rates

What is a variable rate home loan?

Couple talking with a brokerA variable rate home loan has an interest rate which can fluctuate as your lender responds to economic factors such as the cost of funding, the Reserve Bank of Australia's official cash rate decisions each month and more.

This means over the course of a year, your home loan rate (and your periodic repayments) might increase or decrease. In Australian history, variable interest rates have seen highs of around 17%, and lows around 3%.

Learn why interest rates change.

Variable rate home loans contrast with fixed rate home loans, where you enter into an agreement with your lender for a predetermined period of time, usually between one to five years, during which your interest rate won't change.

There are also mixtures of variable rate and fixed rate home loans known as split rate loans, and these allow you to split your home loan into two or more portions and allocate variable or fixed rates to each portion.

Should I get a fixed or variable rate loan?

 

Pros and cons of a variable rate home loan

In general, variable rate home loans have advantages and disadvantages you should be aware of.

Pros

  • Features. Many variable rate home loans come with useful features, such as the ability to make additional repayments, offset accounts and redraw facilities. These features are not offered in abundance with fixed-rate loans.
  • 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 would need to pay high discharge fees to exit the loan early.
  • Falling interest rates. A variable rate home loan provides you with the ability to benefit from falling interest rates, which are typically passed on to variable rate customers. Even a 0.25% rate reduction could make a big difference to your periodic repayments.

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.

How do you compare variable rate loans?

Piggy bank and calculatorComparing a variable rate home loan should take into account a range of factors, including:

  • Interest rate. Interest rates will impact your repayments, so ensure you choose an interest rate which will result in a repayment you can manage. 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. This will help you prepare and manage your interest rate risk.
  • 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 and fees and expresses them as a percentage.
  • 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.

Types of variable rate home loans

There are a number of variable rate home loans on offer. These include:

  • Variable rate full featured home 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.
  • Low doc variable rate home loans. Low doc variable rate home loans suit those who are self-employed or otherwise aren't able to satisfy the usual income evidence requirements lenders set. Low doc home loans can come with a range of features like regular variable rate home loans.
  • Variable rate bad credit home loans. Lenders that offer bad credit home loans have more flexible credit history requirements, and can be applied for by discharged bankrupts or those with paid and unpaid defaults. These will usually have higher fees and rates depending on the severity of your credit score.
  • 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. An introductory loan can offer a discount off the standard variable interest rate for an introductory period. For example, if your lender's standard variable rate is 5% and your introductory discount is 0.5% then you will save 0.5% for the entire introductory period, so if your lender raises their rates to 5.25% you will pay 4.75% and if their rates go down to 4.50% you will pay just 4% interest.
  • 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.

Things to consider when comparing a variable rate home loan

Keep in mind that while a variable rate home loan can come with a large range of features and is readily available at a wide variety of lenders, there's a chance your rate could decrease or increase over the course of your loan term.

As a result, a variable rate home loan comes with a degree of risk so it's important to review your risk tolerance and your lifestyle needs.

For instance, if you're a young family or you're nearing retirement age, you may want the peace of mind and security offered by a fixed rate home loan.


Frequently asked questions about variable rate home loans

Start a comparison of variable rate home loans today

This page was last modified on 21 November 2017 at 10:26am.

NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I)

A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier)

Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.

IMB Budget Home Loan - LVR <=90% (Owner Occupier, P&I)

Get a competitive rate without features you may not use.

HSBC Home Value Loan - Resident Owner Occupier only, P&I

Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.

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16 Responses

  1. 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.

    • Staff
      MariaOctober 17, 2017Staff

      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

  2. 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

    • Staff
      LiezlAugust 3, 2017Staff

      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

  3. 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

    • Staff
      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.

  4. Default Gravatar
    JonSeptember 30, 2014

    Hi, how do i search for interest only loans?

    • Staff
      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

  5. 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.

    • Staff
      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.

  6. 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???

    • Staff
      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

  7. Default Gravatar
    kateAugust 6, 2013

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

  8. 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

    • Staff
      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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