What is the best variable home loan rate in Australia?

Interest rates have changed a lot over the last couple of years and they could change over the next few months as well. While good interest rates are important, remember to look at what other features and fees come with the loan.

Why are fixed rates sometimes lower than variable rates?

While variable rate home loans are typically lower than fixed rates, situations arise where fixed rates become lower. This usually happens when lenders anticipate that variable rates will remain low for an extended period, or if the market believes the official cash rate will fall in the future, making fixed rates less expensive.

Is a variable rate home loan better than a fixed rate home loan?

The choice between a fixed and variable rate home loan depends on individual circumstances. Variable rates offer flexibility, often come with lower fees, and features like offset accounts, and are easier to refinance. Fixed rates provide repayment stability and protection against rising interest rates, but typically have less flexibility regarding extra repayments, offset accounts, and incur break fees for early exit. Use our repayment calculator and speak to a mortgage broker if you want more information on what the right rate is for you.

How do I know if variable rates are going to rise or fall?

Lenders are free to move your variable interest rate up or down whenever they want. In practice, lenders move rates in response to wider market and economic conditions. While you can't really predict rate changes perfectly, it is possible to get a good sense of which direction rates are moving in. The Reserve Bank of Australia (RBA) sets the official cash rate each month. This is a benchmark for lenders to set interest rates on variable rate home loans. The RBA lowers interest rates to stimulate economic growth and encourage spending. When inflation is high, the RBA raises rates to cool spending and drive prices down.

How often can variable interest rates change in Australia?

Variable interest rates in Australia can change at any time, moving either up or down, based on market conditions and lender decisions.

Which bank has the best variable rate?

Credit unions and online lenders have the lowest variable rate home loans. And for most borrowers, lowest rate = best. But the big banks have really good apps and in-branch service. That can be a very big benefit.

What types of variable rate home loans do lenders offer?

Most lenders offer multiple variable rate home loans . Basic variable home loans. A basic variable loan has a lower rate than a lender's other products (usually) and doesn't come with an offset account. These loans are all about the low rate. Introductory discount home loans. These loans (sometimes called honeymoon home loans) are often the lowest variable rate loans a lender offers. But after the initial discounted period , the rate will revert to a higher rate. That's usually a good time to switch to a better loan. Package home loans. These loans let you combine your mortgage with an offset account plus a credit card or other financial products. In exchange, you get discounted fees on the products and the convenience of having all your banking in one place. The downside? You pay an annual package fee of several hundred dollars. Standard variable home loans. Standard variable rates are a bit of a throwback. These are the benchmark variable rates used for home loans with the Big Four banks and some other lenders. Most lenders discount the actual rate you get or will recommend a similar loan with a lower rate.

When will mortgage rates go down in Australia?

It's hard to predict when mortgage rates will go down again in Australia. The RBA increased the cash rate in February 2026. This followed 3 interest rate cuts in 2025. It's unclear at the moment whether rates will continue to rise or whether they could even fall again later this year.

What is a good interest rate on a variable rate home loan?

A "good" interest rate will really depend on the loan you need for your circumstances. Right now, a mid-5% interest rate is still competitive. The lowest variable interest rate on the Finder website at the moment is 5.35%, but not every borrower will necessarily be right for the lowest rate.

What is the direct relationship between the RBA cash rate and variable home loan rates?

Variable home loan rates in Australia are largely pegged to the Reserve Bank of Australia (RBA)'s official cash rate. Changes in the RBA cash rate often lead to corresponding adjustments in variable home loan rates, although banks don't always pass on every change in full.

What are the potential drawbacks or risks of a variable rate home loan?

The primary drawback of a variable rate home loan is the uncertainty of repayment amounts. As interest rates can change at any time, your regular repayments may increase if rates go up, potentially impacting your budget and financial planning.

Can I make extra repayments on a variable rate home loan without penalty?

Yes, variable rate home loans generally offer greater flexibility, allowing borrowers to make extra repayments without incurring penalties. This feature can help you pay off your loan faster and save on interest.

Is it possible to switch from a variable rate home loan to a fixed rate home loan?

Yes, it is generally possible to switch from a variable rate home loan to a fixed rate home loan, typically by refinancing your existing mortgage. Variable rate loans are often easier to refinance compared to fixed-rate loans, which may involve break fees.

Are there specific fees associated with variable rate home loans that I should be aware of?

Variable rate home loans often come with lower fees than their fixed-rate counterparts. While some competitive variable loans may have no application, ongoing, or exit fees, it's important to check the specific product disclosure statement as some may still carry certain charges. Variable loans typically do not have 'break fees' for exiting early, unlike fixed-rate loans.

What features are typically included with a variable rate home loan, apart from the changing rate?

Beyond the fluctuating interest rate, variable home loans commonly include features such as redraw facilities, which allow you to access extra repayments you've made, and offset accounts, which can reduce the interest you pay by linking your savings to your loan. They also often provide flexible repayment options.

Best Variable Rate Loans from 5.09% in April 2026 from 100+ lenders

20 of 3,069 results

Finder Score	Interest Rate p.a.	Comparison Rate p.a.	Fees	Features	Monthly Payment
Finder score 9.5 Excellent Unloan Variable Home Loan Finder Award	Finder score 9.5 Excellent	Interest Rate 5.69%	Comparison Rate 5.60%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest20% min. equityOwner-occupier	Monthly Payment $2,902 per month	ENDS SOON! $1,000 VISA CARD REWARD 1 Click through 2 Refinance with Unloan 3 Get your reward from Finder Ends by. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Finder score 9.4 Excellent NRMA Home Loans Variable Offset Home Loan	Finder score 9.4 Excellent	Interest Rate 5.69%	Comparison Rate 5.90%	Fees Application: $0 Ongoing: $180 p.a.	Principal & Interest50% min. equityOwner-occupierOffset account	Monthly Payment $2,902 per month	Go to site View details Compare product selectionCompare	loading
Finder score 8.9 Great IMB Budget Home Loan	Finder score 8.9 Great	Interest Rate 5.79%	Comparison Rate 5.82%	Fees Application: $449 Ongoing: $0 p.a.	Principal & Interest20% min. equityOwner-occupier	Monthly Payment $2,934 per month	Cashback: Eligible borrowers can get up to $3,000 cashback when buying or refinancing with IMB. Loan value criteria applies. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Finder score 9.7 Excellent Unloan Variable Home Loan	Finder score 9.7 Excellent	Interest Rate 5.84%	Comparison Rate 5.75%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest20% min. equityInvestment	Monthly Payment $2,950 per month	ENDS SOON! $1,000 VISA CARD REWARD 1 Click through 2 Refinance with Unloan 3 Get your reward from Finder Ends by. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Finder score 9.5 Excellent Unity Bank First Home Buyer	Finder score 9.5 Excellent	Interest Rate 5.70%	Comparison Rate 5.75%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest5% min. equityOwner-occupierOffset accountLMI	Monthly Payment $2,906 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9.5 Excellent Macquarie Bank Offset Home Loan Package Most Loved	Finder score 9.5 Excellent	Interest Rate 5.94%	Comparison Rate 6.19%	Fees Application: $0 Ongoing: $248 p.a.	Principal & Interest40% min. equityInvestmentOffset account	Monthly Payment $2,982 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9.4 Excellent Macquarie Bank Offset Home Loan Package	Finder score 9.4 Excellent	Interest Rate 5.99%	Comparison Rate 6.24%	Fees Application: $0 Ongoing: $248 p.a.	Principal & Interest30% min. equityInvestmentOffset account	Monthly Payment $2,998 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9.4 Excellent Unity Bank Momentum Home Loan	Finder score 9.4 Excellent	Interest Rate 5.79%	Comparison Rate 5.84%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest40% min. equityOwner-occupierOffset account	Monthly Payment $2,934 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9.4 Excellent Macquarie Bank Offset Home Loan Package	Finder score 9.4 Excellent	Interest Rate 6.04%	Comparison Rate 6.29%	Fees Application: $0 Ongoing: $248 p.a.	Principal & Interest20% min. equityInvestmentOffset account	Monthly Payment $3,014 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9.2 Excellent Macquarie Bank Offset Home Loan Package	Finder score 9.2 Excellent	Interest Rate 5.84%	Comparison Rate 6.09%	Fees Application: $0 Ongoing: $248 p.a.	Principal & Interest40% min. equityOwner-occupierOffset account	Monthly Payment $2,950 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9.2 Excellent Macquarie Bank Offset Home Loan Package	Finder score 9.2 Excellent	Interest Rate 5.84%	Comparison Rate 6.09%	Fees Application: $0 Ongoing: $248 p.a.	Principal & Interest30% min. equityOwner-occupierOffset account	Monthly Payment $2,950 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9.2 Excellent loans.com.au Variable Bold Home Loan	Finder score 9.2 Excellent	Interest Rate 5.89%	Comparison Rate 5.93%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest10% min. equityOwner-occupierOffset account	Monthly Payment $2,966 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9.2 Excellent Macquarie Bank Offset Home Loan Package	Finder score 9.2 Excellent	Interest Rate 5.89%	Comparison Rate 6.14%	Fees Application: $0 Ongoing: $248 p.a.	Principal & Interest20% min. equityOwner-occupierOffset account	Monthly Payment $2,966 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9.1 Excellent Newcastle Permanent Real Deal Home Loan	Finder score 9.1 Excellent	Interest Rate 5.94%	Comparison Rate 5.98%	Fees Application: $595 Ongoing: $0 p.a.	Principal & Interest20% min. equityInvestment	Monthly Payment $2,982 per month	Cashback: Eligible purchasers and refinancers can get $2,500 or $3,000 depending on loan value, as long as LVR is 80% or lower. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Finder score 9 Excellent Greater Bank Great Rate Discount Variable Home Loan	Finder score 9 Excellent	Interest Rate 5.69%	Comparison Rate 5.70%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest-10% min. equityOwner-occupierLMI	Monthly Payment $2,902 per month	Cashback: Eligible borrowers applying online can get up to $3,000 cashback. Other eligible refinancers and FHBs can get up to $2,500. LVR, loan value criteria and T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Finder score 9 Excellent Newcastle Permanent Real Deal Home Loan	Finder score 9 Excellent	Interest Rate 5.74%	Comparison Rate 5.78%	Fees Application: $595 Ongoing: $0 p.a.	Principal & Interest20% min. equityOwner-occupier	Monthly Payment $2,918 per month	Cashback: Eligible purchasers and refinancers can get $2,500 or $3,000 depending on loan value, as long as LVR is 80% or lower. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Finder score 8.9 Great Macquarie Bank Basic Home Loan	Finder score 8.9 Great	Interest Rate 5.94%	Comparison Rate 5.96%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest40% min. equityInvestment	Monthly Payment $2,982 per month

Best variable home loan rates

Rates, fees, offsets & overall score updated daily for 170+ variable interest home loans. March rates from 5.35%.