Variable interest rate home loans

Looking for a flexible mortgage with a low variable interest rate? Compare offers from 2.39%.

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Home loans with variable interest rates are the most popular and flexible mortgage products in Australia. They typically offer lower exit fees, more flexible repayment options and useful features like offset accounts and redraw facilities.

Compare a range of variable mortgages suitable for most Australian borrowers in the table below or learn more about these loans.

UBank Home Loan Offer

UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate

2.49 % p.a.

variable rate

2.49 % p.a.

comparison rate

UBank Home Loan Offer

Apply for the UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate and get a low rate with unlimited redraws and no upfront or ongoing fees.

  • Interest rate of 2.49% p.a.
  • Comparison rate of 2.49% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $200,000
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Compare variable rate mortgages from across the market

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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate
2.49%
2.49%
$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.
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
2.64%
2.66%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Refinancers borrowing $250,000 or more can get up to $3,000 cashback (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
2.65%
2.66%
$0
$0 p.a.
80%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online.
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
2.78%
2.79%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000. Refinance to an eligible Suncorp loan and get a cashback of $2,000 or $3,000, depending on your loan amount. Other conditions apply.
Athena Variable Home Loan - Owner Occupier, P&I
2.59%
2.55%
$0
$0 p.a.
80%
Owner-occupiers with 20% deposits can get this competitive variable rate mortgage. $0 application fee and $0 ongoing fees.
Bankwest Complete Home Loan Package Variable - $200k to <$750k LVR <=80% (Owner Occupier, P&I)
2.73%
3.18%
$0
$395 p.a.
80%
A low variable rate loan with a 100% offset account and package discounts.
Macquarie Bank Basic Home Loan - LVR ≤ 60% (Owner Occupier, P&I)
2.59%
2.59%
$0
$0 p.a.
60%
A competitive variable rate home loan for owner-occupiers. Requires a 40% deposit.
Homestar Star Essentials Home Loan - $250K to $850K LVR up to 80% (Owner Occupier, P&I)
2.39%
2.42%
$0
$0 p.a.
80%
A low rate variable mortgage with minimal fees and redraw facility. Requires a 20% deposit. Eligible refinancers can receive up to $1,500 cashback. Conditions apply.
Hunter United No Regrets Home Loan - Owner Occupier
2.79%
2.79%
$0
$0 p.a.
90%
Home buyers can get a competitive variable rate loan with a 100% offset account and low fees.
Macquarie Bank Basic Home Loan - LVR ≤ 80% (Owner Occupier, P&I)
2.74%
2.74%
$0
$0 p.a.
80%
Pay no application and ongoing fees and take advantage of split and redraw options.
Bank of Melbourne Basic Home Loan - Special Offer (Owner Occupiers, P&I) LVR above 60% up to 80%
2.64%
2.66%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Refinancers borrowing $250,000 or more can get up to $3,000 cashback (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
Macquarie Bank Basic Home Loan - LVR ≤ 90% (Owner Occupier, P&I)
3.14%
3.14%
$0
$0 p.a.
90%
Borrow up to $750K with an LVR ≤ 90% and pay no application fee.
Bluestone Prime Direct (Owner Occupier, P&I)
2.59%
2.63%
$0
$0 p.a.
70%
Bluestone's Prime Direct is a competitive variable rate home loan for borrowers with 30% deposits.
HSBC Home Value Loan - Promotional Offer LVR 90% (Owner Occupier, P&I)
2.80%
2.81%
$0
$0 p.a.
90%
A competitive value home loan with no ongoing fee.
BankSA Basic Home Loan - Owner Occupier, P&I
2.64%
2.66%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Refinancers borrowing $200,000 or more can get can get up to $3,000 cashback (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
Hunter United No Regrets Home Loan - Investment
2.99%
2.99%
$0
$0 p.a.
80%
Variable rate mortgage with 100% offset account.
CUA Achieve Variable Home Loan - $500k+ (Owner Occupier, P&I)
2.73%
2.78%
$600
$0 p.a.
95%
Home buyers can get a competitive, low-fee variable rate plus a 100% offset account. Low deposit option available. Eligible new home buyers with low deposits can apply for the First Home Loan Deposit Scheme with this lender and avoid LMI costs.
Heritage Bank Discount Variable Home Loan - LVR <=80% (Owner Occupier, P&I) New Customers Only
2.78%
2.80%
$600
$0 p.a.
80%
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
Greater Bank Great Rate Discount Variable with Family Pledge Home Loan - Up to 110% LVR
2.94%
2.95%
$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.
Athena Variable Home Loan - Investor, P&I
2.99%
2.95%
$0
$0 p.a.
80%
Athena offers a competitive variable rate for investors. No ongoing fees and no application fee. Principal and interest repayments.
loans.com.au Essentials - Variable (Owner Occupier, P&I)
2.79%
2.81%
$0
$0 p.a.
90%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $1000000 from a convenient online lender.
Pepper Money Essential Prime Full Doc Home Loan - LVR >75% up to 80%
3.09%
3.29%
$599
$10 monthly ($120 p.a.)
80%
This is a competitive, flexible variable rate suitable for borrowers with a good credit history. Borrow up to 80%.
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer Discount 1 ($150k+ Owner Occupier, P&I)
2.94%
3.34%
$0
$395 p.a.
95%
New borrowers or refinancers can get a discounted rate with this package loan. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
AMP Essential Home Loan  -  $100,000 and above (Owner Occupier, P&I)
3.34%
3.37%
$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.
UBank UHomeLoan Variable Rate - The Real Reward Offer Owner Occupier Interest Only
3.03%
2.70%
$0
$0 p.a.
80%
A competitive discounted variable rate home loan. 0.33%p.a. Discount Offer for new Owner Occupier Loans.
Newcastle Permanent Building Society Premium Plus Package Home Loan - Tier 1: below $500k (Owner Occupier, P&I)
3.77%
4.15%
$0
$395 p.a.
95%
No application fee and 100% offset account. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
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Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2020 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

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How do variable home loans work?

A woman seated at a desk talking on her phone.A home loan with a variable interest rate can rise or fall whenever the lender decides to raise or lower it. This is the opposite of a fixed rate, which by definition remains the same during a set period of time.

Lenders raise or lower their rates depending on various factors, such as their funding costs (where they get the money to cover mortgages), a desire to be competitive or changes to the official cash rate.

Despite this potential volatility, variable rate mortgages don't usually change all the time. And while a rate increase means your repayments rise, a rate drop means your repayments get cheaper.

How does the RBA cash rate affect variable rate loans?

Every month (except January) the Reserve Bank sets the official cash rate. This rate affects the funding costs of variable home loan interest rates. If the rate rises, you can expect lenders to increase their variable rates. If the rate falls, most lenders will pass on some (or all) of the cut to their variable rate customers.

In 2019, the RBA cut the cash rate three times, in June, July and October. Each cut was 25 basis points (or 0.25%). This meant big savings for variable borrowers, with some lenders passing on the full 75 basis point cut.

In 2010, however, the Reserve Bank raised the cash rate four times, which meant many variable borrowers found their interest rates a full 100 basis points higher by December.

Fixed versus variable rates

Apart from the way the interest rates work, variable rates differ from fixed rates in a few ways. The differences mainly come down to flexibility and features.

Quick facts: Fixed and variable rates

  • The lowest variable rate available on Finder right now is 2.39%.
  • The lowest fixed rate available on Finder right now is 1.98%.
  • Variable rate mortgages are more likely to have offset accounts and redraw facilities.
  • Refinancing a fixed rate loan comes with higher costs.
  • Most Australian borrowers (around 80%) opt for variable interest rates.

However, every individual loan is different. Though less common, it's possible to find a fixed rate loan with low fees and an offset account.

To see how the lowest variable rates stack up against the lowest fixed rates, check out our lowest monthly rates page. Every month we scour Finder's mortgage database and create a list of the 10 lowest fixed and variable loans.

Read more on fixed versus variable rates

The split rate option

Australian borrowers don't have to pick between variable and fixed. Many lenders allow you to split your loan into fixed and variable portions. You can divide your loan amount into equal fixed and variable portions, or in any proportion you choose.

Splitting lets you enjoy the stability benefits of a fixed rate and the flexibility of a variable rate. It's a little complicated, but your lender or a mortgage broker can help you calculate the best split for you.

What should I look for in a variable rate loan?

When comparing variable interest rate mortgages, you should obviously look at the interest rate first. A lower rate means lower repayments.

Here's a quick example using the same loan amount but with a 25 basis point difference in the rate:

DetailsHigher rateLower rate
Loan amount$400,000$400,000
Loan term30 years30 years
Interest rate3.25%3.00%
Monthly repayments$1,740$1,686
Savings (monthly)N/A$54
Savings (yearly)N/A$648
Savings (30 years)N/A$19,440

You can use a repayment calculator to see the difference between various rates, or check the repayment column in the loan table above.

Features

A variable loan's features can be useful, if you use them. For example, if you have extra savings, you might want a loan with an offset account so you can save cash and minimise your interest payments.

If you don't need this feature, you can look for a loan without it, which might have a lower interest rate.

Fees

A variable rate home loan can come with a range of fees. If the loan works for you and the interest rate is low, a few fees aren't so bad. But if you can avoid fees, then why pay more?

Compare more home loan options here

Read more on this topic

Home Loan Offers

Important Information*
Logo for Athena Variable Home Loan - Owner Occupier, P&I
Athena Variable Home Loan - Owner Occupier, P&I

Owner-occupiers with 20% deposits can get this competitive variable rate mortgage. $0 application fee and $0 ongoing fees.

Logo for UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate
UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate

Take advantage of a low-fee mortgage with a special interest rate of just 2.49% p.a. and a 2.49% p.a. comparison rate.

Logo for HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)

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

Logo for Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)

Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000. Refinance to an eligible Suncorp loan and get a cashback of $2,000 or $3,000, depending on your loan amount. Other conditions apply.

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20 Responses

  1. Default Gravatar
    KeithOctober 4, 2019

    We have a current Reverse Mortgage with Bankwest which was established several years ago. Can you tell me what the current rate is we would be incurring and if it is a Variable Rate and any hidden charges involved.

    • Default Gravatar
      NikkiOctober 6, 2019

      Hi Keith,

      Thanks for getting in touch! It is helpful to know that while we compare variable rate home loans on our page, we do not have the actual current rate is per lender and in this case, Bankwest. It would be best to get in touch with your preferred lender to obtain more information on monthly repayments.

      Hope this clarifies! Feel free to reach out to us again for further assistance.

      Best,
      Nikki

  2. 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

    • Avatarfinder 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

  3. 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

  4. 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

  5. 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

    • Avatarfinder 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.

  6. Default Gravatar
    JonSeptember 30, 2014

    Hi, how do i search for interest only loans?

    • Avatarfinder 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

  7. 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.

    • Avatarfinder 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.

  8. 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???

    • Avatarfinder 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

  9. Default Gravatar
    kateAugust 6, 2013

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

    • Avatarfinder 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

  10. 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

    • Avatarfinder 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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