Your selected home loans
Owner Occupier, LVR <80%
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Read our Mozo Review to learn more about the Unloan Unloan Variable
Your selected home loans
Owner Occupier, LVR<60%, Principal & Interest
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
Read our Mozo Review to learn more about the Macquarie Basic Home Loan
Your selected home loans
Owner Occupier, Principal & Interest, LVR <60%
Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
Read our Mozo Review to learn more about the ubank Flex Home Loan
Your selected home loans
Principal and Interest, LVR <90%
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.
Read our Mozo Review to learn more about the loans.com.au Variable Home Loan 90
Your selected home loans
Owner Occupier, Principal & Interest, <80% LVR
Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.
Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.
Read our Mozo Review to learn more about the Aussie Elevate
Your selected home loans
LVR<80%, Owner Occupier, Principal & Interest
Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
Read our Mozo Review to learn more about the ING Mortgage Simplifier
Your selected home loans
Package, Owner Occupier, LVR<60%, Principal & Interest
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
Read our Mozo Review to learn more about the Macquarie Offset Home Loan
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LVR <70%
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for refinancers only. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 30% deposit required.
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for refinancers only. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 30% deposit required.
Read our Mozo Review to learn more about the loans.com.au SMSF Home Loan
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Want a flexible home loan with low fees and interest-saving features? A variable rate home loan could be the ticket!
But just cuz there are pros, doesn't mean there aren't cons. So to help you navigate the wondrous world of variable home loan rates in Australia, we've created this quick cheat sheet.
We have a great range of articles, tips, and tools designed for first time buyers. Head to our dedicated first home buyers hub for everything you need to know about purchasing your first home and getting your first home loan. View
A variable rate home loan has an interest rate that changes depending on the economy. The interest rate "varies" depending on how high or low market interest rates are.
So if market interest rates are up, then the variable interest rate on your home loan may also go up.
On the flip side, if market interest rates are down, then the interest rate on your home loan may also go down, meaning that you'll pay less in interest on your mortgage repayments.
Variable home loans are the most popular type of home loans in Australia. Most banks, lenders, and credit unions will have a number of variable home loan deals to choose from.
Options may include:
Compared to fixed rate home loans, variable rate home loans can help give borrowers more flexibility with their home loan since rates depend on fluctuations in the market.
These interest rates can also come with minimal fees and handy repayment options, like extra repayments or a redraw facility. Taking the time to shop around for variable interest rates could save you thousands over the life of your loan.
Every home loan will have its pros and cons. The challenge for every borrower is to decide on which option will best suit your financial situation and your lifestyle.
Here are some key things to look for.
Your interest rate will determine how much your monthly repayments will be, so find a home loan with a competitive rate. Pay attention to the comparison rate, since this is a more accurate number for cost calculations.
Features like offset accounts can help you to minimise the cost of your home loan. But having more of these perks at your disposal could mean a higher interest rate or more fees. Avoid paying for features you will never use.
Add up ongoing or upfront fees like application or property valuation fees and compare them with your interest rate. Sometimes, you are better off paying a small ongoing fee to get a lower interest rate.
How much you pay on your home loan each month will usually be determined by the following factors:
Typically, variable home loan repayments are principal and interest repayments. This means the amount you pay each month will be a portion of your principal, plus interest accrued (calculated daily) and any ongoing fees.
To do your own numbers crunch, head on over to our mortgage repayment calculator and get an estimate for the size of your monthly repayments.
Your variable rate will often change by your loan-to-value (LVR) tier. Lower LVR tiers tend to get lower interest rates because the borrower has more security built into the loan: this makes lenders see them as less risky, therefore they get lower rates.
Fixed and variable rate home loans will have their pros and cons. As a borrower, it’s important not to review all options carefully and choose one that is going to best suit your financial situation or comfort level.
Variable rates tend to follow the fluctuations of the broader economy. If rates drop, so will your repayments. If rates rise, so will your repayments.
This is exemplified whenever the Reserve Bank of Australia (RBA) changes the official cash rate. Many lenders follow suit by passing the full cut or a partial change onto your home loan.
The key reason to take out a full feature home loan is to benefit from more flexibility in how you make your repayments, which could also help you budget better and save on interest.
Full feature home loans often include an offset account facility, an unlimited number of free extra repayments, and free redraws.
An offset account is a transaction and/or savings account linked to your home loan. Having this type of account means you could pay less interest on your home loan.
For example, if you have $400,000 left on your home loan and $200,000 in a 100% offset account, you would only pay interest for $200,000 of your loan.
There are many lenders with sharp variable rates, especially online lenders.
However, while a great rate is a good thing to chase, it's also good to make sure you’re getting all the features and flexibility you need. So when you’re comparing home loans, make sure you’re comparing the whole package, including price, features and flexibility.
If you're looking for one of the most competitively priced variable rate home loans in Australia, then our annual Mozo Experts Choice Home Loan Awards is a good place to start your search.
Mozo's market snapshots, mortgage calculators, and home loan database are all useful tools to help you compare and crunch costs for variable home loans.
If you want to delve deeper and compare all the home loans in our database (over 400 home loans), use our home loan search tool which will find options based on your requirements including interest rate type, your borrowing size and the value of your property.
If you want more information to help you make an informed decision, head on over to our guides section.
Learn what you need to know about mortgages, including tips and traps, in our helpful guides. See all
Get the latest on property market trends, interest rates, and lending news from Mozo's expert writers. See all
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The representative is the reason for the positive review. Rebecca Wickham at BCU was attentive and patient.
Read full reviewThe representative is the reason for the positive review. Rebecca Wickham at BCU was attentive and patient.
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I have banked with all the major banks and a few smaller and by far Westpac is the best
Read full reviewI have banked with all the major banks and a few smaller and by far Westpac is the best
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