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Variable Rate Home Loans

Variable rate home loans offer some of the cheapest mortgage deals on the market! Many come feature packed with low fees, redraws and extra repayment options. Just make sure you can cover the repayments if rates begin to rise.

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How do I choose the best variable rate loan for me?

It's easy to find the best variable rate home loan at a glance with Mozo. The comparison rate will show you the 'true cost' of each loan including any hidden fees and extra costs. Or, you can try our home loan negotiator service to get help negotiating a better home loan deal.

Will rate changes affect my loan?

The real trick to making the most of a variable loan is to budget for hikes and drops in interest rates when the RBA changes the cash rate. You can find out how rate changes will affect your repayments with our nifty rate change calculator.

How do I apply online for a loan?

That's Easy! Once you've chosen the best loan for you click the blue Go to site button to the right of your favourite variable rate loan and you'll be redirected to an online application form.

Variable rate home loan comparisons on Mozo - last updated 4 March 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a.
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.

    Compare
    Go to site
    Details
  • Basic Home Loan

    Owner Occupier, LVR<80%, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.64% p.a.
    2.64% p.a.

    Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.

    Compare
    Go to site
    Details
  • Mozo Experts Choice 2020
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.34% p.a.
    2.34% p.a.

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year. Free redraw with flexible repayments. Min 20% deposit.

    Compare
    Go to site
    Details
  • Mozo Experts Choice 2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.19% p.a.
    2.19% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.

    Compare
    Go to site
    Details
  • Discounted Variable Home Loan

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.94% p.a.
    3.34% p.a.

    Enjoy a great low rate with no ongoing fees. Ability to split your loan between fixed and variable. 100% offset account.

    Compare
    Go to site
    Details
  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    variable rate
    comparison rate
    Initial monthly repayment
    2.19% p.a.
    2.20% p.a.

    Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) and can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

    Compare
    Go to site
    Details
  • Economy Variable Home Loan

    Owner Occupier, Principal & Interest, <70% LVR

    variable rate
    comparison rate
    Initial monthly repayment
    2.59% p.a.
    2.76% p.a.

    An ongoing low variable interest rate with free redraw, flexible repayment options and one free valuation. Discounted Economy variable rate available for owner occupier lending with max LVR of 70%.

    Compare
    Details
  • Well Balanced

    Owner Occupier, Principal & Interest, LVR <80%

    variable rate
    comparison rate
    Initial monthly repayment
    2.17% p.a.
    2.20% p.a.

    Well Balanced home loan is a low rate home loan with free online redraw and no valuation fee. Purchase, Refinance or Equity Release purposes allowed.

    Compare
    Go to site
    Details
  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.44% p.a.
    2.45% p.a.

    No ongoing fees. Free extra repayments and online redraw. Mozo Experts Choice Split Home Loan 2020^

    Compare
    Go to site
    Details
  • Back to Basics Special

    LVR<80%, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.54% p.a.
    2.55% p.a.

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more.

    Compare
    Go to site
    Details
  • Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <70%

    variable rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    2.12% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st May 2021.

    Compare
    Details
  • Mozo Experts Choice 2020
    Liberate Variable Home Loan

    70-80% LVR, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.29% p.a.
    2.23% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit. To reward borrowers for paying down their home loan, Athena will now automatically lower the rate as the loan is paid down. Crowned Best New Home Loan for 2020 by the Mozo Experts.

    Compare
    Go to site
    Details
  • Hot DealAvailable to self-employed borrowers
    Prime Home Loan

    Owner Occupier, Principal & Interest, LVR <70%

    variable rate
    comparison rate
    Initial monthly repayment
    2.44% p.a.
    2.49% p.a.

    Find your fit with competitive home loans for borrowers with clear credit and strong employment history. Flexible repayment terms. 20 year home loan history. Get a dedicated loan consultant for the loan application process. 30% deposit required.

    Compare
    Go to site
    Details
  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.49% p.a.
    2.49% p.a.

    Competitive low rate. No application or account management fees. Get the flexibility to split your loan and set different repayment types. Enjoy fee free withdrawals of your savings.

    Compare
    Go to site
    Details
  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    variable rate
    comparison rate
    Initial monthly repayment
    2.34% p.a.
    2.35% p.a.

    Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) and can also make extra repayments. Redraw facility available. Simple online application process.

    Compare
    Go to site
    Details
  • Economy Variable Home Loan

    Owner Occupier, Principal & Interest, 70-80% LVR

    variable rate
    comparison rate
    Initial monthly repayment
    2.64% p.a.
    2.81% p.a.

    An ongoing low variable interest rate with free redraw, flexible repayment options and one free valuation. Discounted Economy variable rate available for owner occupier lending with max LVR of 80%.

    Compare
    Details
  • Mozo Experts Choice 2020
    Smart Home Loan 80

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.48% p.a.
    2.50% p.a.

    A low-rate home loan that could save you thousands, with no ongoing fees plus unlimited extra repayments and free redraws. Mozo Experts Choice Low Cost Home Loan 2020. You'll need to be borrowing $1 million or less and have at least a 20% deposit required.

    Compare
    Go to site
    Details
  • Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR 70-80%

    variable rate
    comparison rate
    Initial monthly repayment
    2.29% p.a.
    2.32% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st May 2021.

    Compare
    Details
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*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

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Variable home loan rates Australia

Are you looking for a flexible home loan with low fees, an extra repayments facility and the ability to redraw on that cash? Then a variable rate home loan could be just the ticket.

But that doesn't mean there aren't some catches to watch out for. So to help you navigate the wondrous world of variable home loan rates in Australia we've created this quick cheat sheet.

Are you a first home buyer? We also have a great range of articles, tips and tools designed specifically with first timers in mind. So head on over to our dedicated first home buyers hub for everything you need to know about purchasing your first home and getting your first home loan like a pro.

Are there different types of variable rate home loans?

The great news is that as a borrower you've got a lot of choice when it comes to variable rate home loans as these are the most popular loan type in Australia. Most banks, credit unions and online lenders will have a number of different variable home loan products to choose from.

Options may include:

Introductory rate home loan. Sometimes called “honeymoon” rate loans, these offer a low variable rate for an initial set period (usually 1 - 3 years) which reverts to the loan’s standard variable rate once the introductory period ends. If you’re considering one of these loans be sure to check that the revert rate is competitive as you don’t want to end up paying more than you should be after the introductory rate ends.

Basic home loan. Like the name suggests, you’ll get little in the way of features in return for a lower interest rate than a full feature loan. If you don’t need bells and whistles like an offset account or unlimited free extra repayments then a basic home loan could be a good money saving option.

Full feature loan. A full feature home loan is a loan that has flexible features and other bells and whistles like an offset account facility, free extra repayments and free redraw. You might pay an annual or monthly service fee for a full feature home loan but the extra fees can be worth it for the added flexibility and benefit of using an offset account to reduce your interest.

Variable rate package. If you’re borrowing over $150,000 you may qualify for a packaged home loan, where you get a lower interest rate if you bundle other products like a credit card and bank account with your home loan provider. You will generally pay an annual package fee for this type of loan but the rate discounts can be substantial, especially if you are borrowing a large amount of money.

Standard variable rate. This usually refers to a 'reference rate' that the provider uses to calculate margins for the rates applied to the rest of their variable rate loan options. Standard Variable rates are not restricted by LVR or loan amount. They should have all of the flexibility options offered by the provider including offset account, loan portability and the ability to split between fixed and variable.

Rate tiers of variable loans, what does this mean?

Many variable rate home loans have rate tiers, which means that as a borrower if you meet certain criteria you will be offered a different rate from someone who does not. For variable rate home loans these are determined by two things: how much you are borrowing and your loan to value ratio. Sometimes it can be a combination of both factors.

Loan amount: Lenders traditionally reserve their most competitive rates for borrowers who are borrowing more money. So the higher your loan amount generally the more competitive the interest rate will be. Each lender will have their own rate tier structure but as a general rule of thumb package discounts kick in when you are borrowing more than $150,000 with the size of the discount increasing in line with the size of your loan.

Loan to value ratio. The other factor that will determine the interest rate of a loan is the loan-to-value ratio or LVR. Some loans have LVR requirements of 80% and below to qualify for the most competitive rate. This means that you will need to have at least a 20% deposit or equity stake in the property to get the home loan. Some loans will allow you to borrow up to 95% but you may pay a higher interest rate and also be required to pay lenders mortgage insurance. See more about this here.

What to look for in a variable rate home 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. Look for:

Competitive interest rate. Your interest rate will determine how much your repayments will be each month so you will want to put time and effort into finding a home loan with a competitive rate. Don't be swayed by low headline or honeymoon rates - be sure to also review the comparison rate which takes into account revert rates and fees over the life of the loan.

Flexible features. One of the top reasons for choosing a variable rate home loan over a fixed rate home loan is the features that can help you to minimise the cost of your loan. Having an offset account or making extra repayments without penalties will save you money but only if you use them. Don't pay for features you will never use.

Low fees. There are upfront fees that you will be required to pay when you take out the home loan like an application or valuation fee and there are ongoing fees which might be charged monthly or annually. It's important to weigh up the cost of these in relation to the interest rate you will pay on your loan. Sometimes, you are better off to pay a small ongoing fee to get a lower interest rate than to pay no fee and have a higher rate.

Variable rate versus fixed rate home loans, which is better?

Both fixed and variable rate home loans will have their pros and cons. As a borrower it is important not to try and 'time the market' but rather review all options carefully and choose one that is going to best suit your financial situation or comfort level. If you are nervous about the impact that a rate rise will have on your household budget then opt to fix some or all of the loan, if not, a variable loan might be more suitable.

The pros of a variable interest rate include:

lower repayments when interest rates are low

extra features like an offset account or extra repayments facility which can save you money over the life of your home loan

Fixed rate loans on the other hand make household budgeting easier as your repayments don't change over the term of the loan.

Borrowers also have the option with some lenders to split their home loan between a fixed and a variable rate. You can lock away a portion of your home loan to protect you if interest rates rise and you get to use the variable portion of your loan to put extra cash into the loan while rates are low which will save you thousands over the life of the loan. That's a win win.

How can Mozo help you find the right variable rate home loan?

Now that you've read up on all the things you'll need to consider when choosing a variable rate home loan now's the time to compare your options and this is where the tools on our site come in.

First up is the market snapshot table which lists some of the current top home loan deals available from a range of lenders. You'll find this at the top of this page.

If you want to delve deeper and compare all the home loans in our database - that's over 400 home loans - use our home loan search tool which will order results based on your requirements including things like variable interest rate, monthly repayments and fees.

If you are refinancing and looking to switch home lenders we also have a tool specifically designed for you. Our free online Switch & Save Calculator compares your existing home loan against the market and gives you a personalised report showing you which home loans will save you the most in interest and fees if you switch.

We also understand that choosing a home loan can be a confusing process even when you have all the tools to do it yourself, and you sometimes just want to speak with an expert.

You can call our home loan experts on 13 MOZO (6696) or send us an online enquiry and we'll call you back. Our home loan experts can help you with everything from understanding home loan jargon through to negotiating with the banks on your behalf for a better deal.

Another unique element of our site is that you can also read up on real customer experiences with our home loans ratings hub. We've got customer reviews of major banks, credit unions even online lenders like UBank and Loans.com.au. If you want the experts' opinion, head on over to our Experts Choice Home Loans Awards page for our top picks of the best value home loans in the market.

And for the number lovers out there we've got a range of home loan calculators that you can play around with until your heart's content. We can help you work out how much you can afford to borrow to how much your repayments could be depending on the term of the loan.

Finally, you can prepare for a rate rise with our rate change calculator, which will calculate your actual monthly repayments, should interest rates go up.

If you want more information to help you make an informed decision, head on over to our guides section.

Home Loan Reviews

People's Choice Credit Union Variable Home Loan (Package) review
Overall 9/10
Friendly staff reasonable rates charges & features

People's Choice have a good range of home loans at reasonable rates. If you take out a home loan package there are no fees other than an annual fee - all refinancing, redraws, etc. are at no additional cost. They offer unlimited redraw facilities and the best thing I like is you can have as many offset accounts as you want - I currently have six for different purposes which makes saving up for different things easier. The staff are friendly and genuinely want to help you achieve your financial goals.

Read full review

People's Choice have a good range of home loans at reasonable rates. If you take out a home loan package there are no fees other than an annual fee - all refinancing, redraws, etc. are at no additional cost. They offer unlimited redraw facilities and the best thing I like is you can have as many offset accounts as you want - I currently have six for different purposes which makes saving up for different things easier. The staff are friendly and genuinely want to help you achieve your financial goals.

Price
7/10
Features
9/10
Customer service
10/10
Convenience
8/10
Trust
9/10
Less
Malcolm, South Australia, reviewed 1 day ago
Commonwealth Bank Standard Variable Rate review
Overall 5/10
Not a lot of trust for banks.

Pricing is not competitive as other banks have much lower rates for the same kind of loan. Features have a redraw facility but that's it. I have never heard from the bank in 17 years after receiving the loan - I do hear from my mortgage broker - who sends me a scratchie ticket every year for Christmas. Imagine getting that from your bank - don't think so! The bank only thanks you for being a loyal customer if you walk in there and ask for service. Convenience is great through online banking, but they do not want you in the bank as they make that clear by having one teller on at lunch - very uninviting. Trust - Have they really earned the trust of the people? I would not recommend any bank to anyone unless the bank bent over backwards to give amazing services and to also keep contact with their customers.

Read full review

Pricing is not competitive as other banks have much lower rates for the same kind of loan. Features have a redraw facility but that's it. I have never heard from the bank in 17 years after receiving the loan - I do hear from my mortgage broker - who sends me a scratchie ticket every year for Christmas. Imagine getting that from your bank - don't think so! The bank only thanks you for being a loyal customer if you walk in there and ask for service. Convenience is great through online banking, but they do not want you in the bank as they make that clear by having one teller on at lunch - very uninviting. Trust - Have they really earned the trust of the people? I would not recommend any bank to anyone unless the bank bent over backwards to give amazing services and to also keep contact with their customers.

Price
5/10
Features
5/10
Customer service
1/10
Convenience
5/10
Trust
3/10
Less
Karen, Queensland, reviewed 3 days ago
NAB Home Loan review
Overall 1/10
Not happy.

We had our home loan with NAB. We were looking at refinancing to get a better interest rate and a little more money to do renos on the house. Was told no straight away, even though we have been paying more money onto the loan and have never been behind in payments. They didn't even have a look to see if we could or couldn't do it. Also we didn't change anything throughout COVID-19, still paid the some every fortnight. We have been with NAB for over 10 years and no help, the customer service was so bad I have made a complaint. We have gone with another company and NAB bank made the settlement go on for over month. They kept on saying we need more time with all the paperwork, which they had in time of the settlement. Both myself and the other bank put it down to they want the monthly interest rate that they were going to miss out on.

Read full review

We had our home loan with NAB. We were looking at refinancing to get a better interest rate and a little more money to do renos on the house. Was told no straight away, even though we have been paying more money onto the loan and have never been behind in payments. They didn't even have a look to see if we could or couldn't do it. Also we didn't change anything throughout COVID-19, still paid the some every fortnight. We have been with NAB for over 10 years and no help, the customer service was so bad I have made a complaint. We have gone with another company and NAB bank made the settlement go on for over month. They kept on saying we need more time with all the paperwork, which they had in time of the settlement. Both myself and the other bank put it down to they want the monthly interest rate that they were going to miss out on.

Price
2/10
Features
2/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Sonia, Queensland, reviewed 3 days ago
See
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