January 2018’s cheapest variable rate mortgages

Adam Smith 4 January 2018 NEWS

money raceVariable rate mortgages are growing in popularity as lenders bring competitive offers to the market.

Details of the home loans featured on this page were correct for 4 January 2018. Check out all our cheapest loans here

With the Reserve Bank leaving the cash rate at a historic low throughout 2017, more Australians are choosing to take a punt on variable rate home loans, according to recent research.

Mortgage Choice data from last month shows variable rate home loans have grown in popularity, accounting for 75.7% of all mortgages written through the broker in November. Mortgage Choice chief executive John Flavell said inactivity from the Reserve Bank helped to boost demand for variable rate products.

“Moreover, a number of Australia’s lenders are offering competitive rates and discounts on their variable rate home loan products. Over the last few weeks, we have seen a number of lenders trim the interest rates on some of their variable rate products, which could be making these types of products more desirable amongst borrowers,” Flavell said.

Flavell said he expected to see variable rates continue to dwarf fixed rate home loans in popularity.

“The fact is, most lenders are offering very competitive variable rates at the moment. Borrowers are acutely aware of this and are looking to take advantage of the low variable rate environment,” he said.

With variable rates remaining historically low, we’ve compiled 10 of the cheapest variable rate home loans on offer through the finder.com.au database. To make sure the home loans presented are helpful for the average homebuyer, we built our list around the following criteria:

  • All loans listed are principal and interest loans for owner-occupiers.
  • All loans have a maximum loan-to-value ratio (LVR) of at least 80%.
  • Each loan has a minimum loan amount no more than $150,00 and a maximum amount of more than $500,000.
  • We've excluded line of credit, guarantor and construction loans.
  • Rates are correct as of 4 January 2018.

Check out the table below to see some of the sharpest deals on offer through finder.com.au. It may be time to look for a better rate.

*Our cheapest variable rate home loans round-up is a monthly article that features the cheapest loans in finder.com.au's database. The rates and other information in this page are correct at the time of publication and are subject to change. There may be cheaper loans on the market than the ones listed here.

Want to compare more options? Check out all our cheapest home loans

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