Variable rate home loans

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

loans.com.au Smart offer

loans.com.au Smart Home Loan (Owner Occupier, P&I)

3.48 % p.a.

variable rate

3.50 % p.a.

comparison rate

loans.com.au Smart offer

With the loans.com.au Smart Home Loan enjoy a home loan with no application or ongoing fees as well as a competitive interest rate. Borrow up to 80% of the property's value.

  • Interest rate of 3.48% p.a.
  • Comparison rate of 3.50% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $50,000
  • Max borrowing: $1,000,000
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Compare variable home loan rates

Rates last updated March 20th, 2019
$
Loan purpose
Offset account
Loan type
Repayment 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
3.48%
3.50%
$0
$0 p.a.
80%
Get one of the lowest variable interest rates on the market and pay 0 application or ongoing fees.
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.
3.69%
3.72%
$445
$0 p.a.
90%
NSW and ACT customers only. Get a special discount for a limited time when you open an IMB Transaction Account.
3.59%
3.61%
$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.
3.59%
3.62%
$600
$0 p.a.
70%
A low, variable rate mortgage for home buyers wishing to consolidate existing debts. Refinancers can get up to $1,000 on settlement to help with switching costs.
3.54%
3.58%
$0
$0 p.a.
80%
Refinancers can get a competitive rate, save on fees and access a 100% offset account plus redraw facility. $700 refinance cashback offer.
3.70%
3.70%
$0
$0 p.a.
70%
A low interest rate home loan with no application or ongoing fees.
3.59%
3.62%
$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.
3.73%
3.87%
$0
$10 monthly ($120 p.a.)
80%
Earn 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.
3.97%
3.99%
$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.
3.81%
3.81%
$0
$0 p.a.
70%
A simple mortgage with no application or ongoing fees that has extra repayments plus split and redraw options. Requires a 30% deposit.
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 $2000000 from a convenient online lender.
3.72%
3.72%
$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.
3.69%
4.21%
$0
$10 monthly ($120 p.a.)
90%
Get a low discounted rate for 2 years plus a 100% offset account. And you can get the loan with a 10% deposit.
3.86%
3.86%
$0
$0 p.a.
80%
Low fee loan with extra repayments. Pay no application and ongoing fees and take advantage of split and redraw options.
3.76%
3.76%
$0
$0 p.a.
70%
Get a discount for keeping your LVR at $70% or below with this innovative online lender.
3.89%
4.27%
$0
$395 p.a.
80%
New borrowers or refinancers can get a discounted rate with this package loan.
3.72%
3.73%
$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.
3.69%
3.83%
$0
$10 monthly ($120 p.a.)
80%
Earn Velocity Frequent Flyer Points on your mortgage (subject to eligibility requirements). Plus, access a 100% offset account to save on interest.
3.72%
4.15%
$0
$395 p.a.
80%
A low variable rate loan with a 100% offset account and package discounts.
3.90%
3.90%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a free redraw facility with this innovative online lender.
3.67%
3.69%
$600
$0 p.a.
80%
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
3.99%
4.15%
$300
$10 monthly ($120 p.a.)
80%
Take advantage of a basic no-frills home loan with extra repayments and fee free redraw.
3.87%
4.30%
$0
$395 p.a.
80%
Unlock a range of savings with this competitive package home loan offer. Offset account and redraw facility included.
3.77%
3.79%
$600
$0 p.a.
90%
Buy your home with just a 10% deposit, few fees and a reasonable interest rate.
3.69%
4.09%
$600
$395 p.a.
95%
Get interest rate discounts and waived fees on this package loan with a 100% offset account. $500 cashback offer for first homebuyers borrowing over 80% and paying LMI.
4.10%
4.10%
$0
$0 p.a.
70%
Investors with a 30% deposit can get this low rate loan to fund their property portfolio. Take advantage of split and redraw facilities.
3.87%
3.89%
$600
$0 p.a.
95%
A low deposit mortgage for aspiring home owners. Fees are low and you can make extra repayments.
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.
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.
80%
Pay no application or ongoing fees and get access to a redraw facility and flexible repayment schedule.
3.69%
3.69%
$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.
4.65%
5.02%
$0
$395 p.a.
95%
No application fee and 100% offset account.

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loans.com.au Smart offer

loans.com.au Smart Home Loan (Owner Occupier, P&I)

3.48 % p.a.

variable rate

3.50 % p.a.

comparison rate

loans.com.au Smart offer

With the loans.com.au Smart Home Loan enjoy a home loan with no application or ongoing fees as well as a competitive interest rate. Borrow up to 80% of the property's value.

  • Interest rate of 3.48% p.a.
  • Comparison rate of 3.50% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $50,000
  • Max borrowing: $1,000,000
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.