Compare current variable rate home loans

Variable rate home loans typically feature lower rates, redraws and extra repayment options. Try our comparison calculator below to compare variable loan options that might be suitable for you.

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Home loan comparisons on Mozo

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Last updated 13 June 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    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.

  • The Better Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR<80%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    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.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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.

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Knowledge Hub

Variable home loan rates in Australia

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.

Are you a first home buyer?

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

What is a variable rate home loan?

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.

Woman excited about variable rate home loan

Are there different types of variable rate home loans?

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:

  • 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. Always compare using the revert rate, not the introductory rate.
  • Basic home 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 like an offset account, free extra repayments, and a free redraw facility. You might pay an annual or monthly service fee.
  • 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. This usually comes with an annual package fee, but the rate discounts can be enormous.
  • 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 loan-to-value ratio (LVR) or loan amount. These usually include features like offset accounts and split loan rates.

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.

What features 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.

Here are some key things to look for.

Compare competitive interest rates laptop

Competitive interest rate

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.

Woman excited about flexible features

Flexible features

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.

Man excited about low fees

Low fees

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 do mortgages repayments for variable interest rate home loans work?

How much you pay on your home loan each month will usually be determined by the following factors:

  • Your original loan amount. This is usually referred to as the principal amount of your loan.
  • Your home loan term. This is how many years you opted to pay back your loan over (usually 20-30 years).
  • Your home loan interest rate. If market interest rates drop, then home loan variable rates may also drop, and vice versa.  

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. 

Variable home loan FAQs

What are variable loan rate tiers?

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.

Is it better to have a fixed or variable rate home loan?

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. 

How do rate changes affect my home loan?

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. 

When is it a good idea to take out a full feature 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.

What is an offset account?

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.

Where can I find great variable home loan rates?

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.

What's the best variable rate home loan in Australia?

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. 

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

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.

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Evlin DuBose

RG146
Senior Money Writer

Evlin is RG146 certified for general advice (Tier 2) and has become a leading voice in finance news since joining Mozo two years ago. She is regularly featured in Google's Top Stories alongside major publications like News.com.au and Yahoo Finance, and seasoned journalists. Despite being in the industry for just two years, she is Mozo's go-to writer for all things RBA and her research has been referenced by the Victorian Government. With a Bachelor of Communications degree from UTS, where she won the Dean's Merit Award and acted as the Director of Student Publications.

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JP Pelosi

RG146
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He likes a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

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No bank wants to help you when you have $165,000 mortgage we tried to borrow $50,000 and we got treated like we’re idiots

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Features
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Customer service
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Overall 6/10
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6/10
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6/10
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Easy to sign up but they have no intention on initiative to tell you when interest rates go up.

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4/10
Features
4/10
Customer service
4/10
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7/10
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1/10
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