1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
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.
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.
Read our Mozo Review to learn more about the Smart Booster Home Loan
Owner Occupier, LVR<80%, Principal & Interest
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
Read our Mozo Review to learn more about the Basic Home Loan
Owner Occupier, Principal & Interest
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.
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.
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
<60% LVR, Owner Occupier, Principal & Interest
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.^
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.^
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Owner Occupier, Principal & Interest
Enjoy a great low rate with no ongoing fees. Ability to split your loan between fixed and variable. 100% offset account. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.
Enjoy a great low rate with no ongoing fees. Ability to split your loan between fixed and variable. 100% offset account. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.
Read our Mozo Review to learn more about the Discounted Variable Home Loan
Owner Occupier, Principal & Interest, LVR <80%
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.
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.
Read our Mozo Review to learn more about the Well Balanced
Owner Occupier, Principal & Interest, LVR <60%
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.
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.
Read our Mozo Review to learn more about the Neat Home Loan
Owner Occupier, Principal & Interest, <70% LVR
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%.
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%.
Read our Mozo Review to learn more about the Economy Variable Home Loan
LVR<80%, Owner Occupier, Principal & Interest
No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more.
No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more.
Read our Mozo Review to learn more about the Back to Basics Special
Owner Occupier, Principal & Interest, LVR <70%
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 28 February 2021.
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 28 February 2021.
Read our Mozo Review to learn more about the Variable Home Loan Special
70-80% LVR, Owner Occupier, Principal & Interest
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.^
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.^
Read our Mozo Review to learn more about the Liberate Variable Home Loan
LVR <70%
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.
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.
Read our Mozo Review to learn more about the Prime Home Loan
Owner Occupier, LVR<60%, Principal & Interest
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.
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.
Read our Mozo Review to learn more about the Basic Home Loan
Owner Occupier, Principal & Interest, LVR 70-80%
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.
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.
Read our Mozo Review to learn more about the Neat Home Loan
Owner Occupier, Principal & Interest, 70-80% LVR
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%.
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%.
Read our Mozo Review to learn more about the Economy Variable Home Loan
Owner Occupier, Principal & Interest
No ongoing fees. Free extra repayments and online redraw. Mozo Experts Choice Split Home Loan 2020^
No ongoing fees. Free extra repayments and online redraw. Mozo Experts Choice Split Home Loan 2020^
Read our Mozo Review to learn more about the Discounted Home Value Loan
Owner Occupier, Principal & Interest
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.
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.
Read our Mozo Review to learn more about the Smart Home Loan 80
Owner Occupier, Principal & Interest, LVR 70-80%
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 28 February 2021.
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 28 February 2021.
Read our Mozo Review to learn more about the Variable Home Loan Special
^See information about the Mozo Experts Choice Home loans Awards
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.
How much could you save by switching your home loan? Compare savings from over 500 home loans. Find out in a few clicks.
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.
A variable rate home loan is a home loan where the interest rate charged is determined by current market interest rates. This means that the interest rate can vary 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. And on the flipside of that, if market interest rates are down then the interest rate on your home loan may also go down, meaning you’ll be paying less.
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:
Variable rate home loans can help give borrowers flexibility in 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. But that doesn’t mean you should choose any, in fact, by taking the time to shop around variable interest rates, you could wind up saving thousands over the life of your loan. Our Home Loans Interest Rates page can help you compare some of the current variable home loans rate around.
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:
Just like any mortgage repayments, you will be required to pay back part of your variable interest rate home loan once a month. How much you pay back each month will usually be determined by the following factors:
The amount you pay each month will be a portion of the principal amount, plus interest accrued.
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.
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.
When market interest rates drop, the variable interest rate charged on your home loan might also drop. And when market interest rates are up, your provider might hike your home loan interest rate up to match.
For example, if the Reserve Bank of Australia makes cuts to the official cash rate, your home loan provider may decide to pass on the full cut, or part of the cut to your home loan. It’s worth keeping in mind though, that there’s nothing to say lenders have to pass on official rate changes - it’s just recommended.
With this in mind, taking out a variable rate home loan does mean that you will have to prepare for possible increases in interest rates, but it also means that you could benefit from interest rate cuts that you might not benefit from if you were to take out a fixed interest rate 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, free extra repayments and a free redraw service.
At a minimum, this type of home loan usually comes with a free redraw facility and free extra repayments. This combination is great because you can put every spare dollar towards your mortgage and shorten the life of your loan, while the redraw facility allows you to get those funds back if you really need them.
An offset account is a transaction account that is linked to your home loan. Having this type of account means you could pay less interest on your home loan. The funds in the transaction account are offset daily against the balance of your home loan and you are only charged interest on the difference between the two.
For example, if you have a home loan of $400,000, you’ve already paid off $80,000 and you have $200,000 in an account that is being 100% offset, you would only pay interest for $120,000 of your loan. This means that you would be paying less interest, as you are being charged interest on a smaller amount.
One thing to keep in mind when searching for a competitive variable interest rate home loan, is that you will probably have a lot of options. Certainly more options than you may have had, say 10 years ago.
This is definitely a good thing, because it means you can be more choosy and you won’t be restricted to what the big four banks have to offer. These days you can take out a home loan with a credit union, an online bank, a neobank and even a dedicated online home loans lender.
An online bank or lender will often have a much more competitive interest rate to offer, as it has never had to deal with the overhead costs that come with having a physical branch.
Of course while a great price is worth chasing after, it is also good to make sure you’re getting all the features and flexibility you need for that price. So when you’re comparing home loans, make sure you’re comparing the whole package, price, features and flexibility.
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.
They helped me a lot when my ID was stolen and I had lost much money (which I got back thanks to them). Also they gave us a much reduced home loan interest rate.
Read full reviewThey helped me a lot when my ID was stolen and I had lost much money (which I got back thanks to them). Also they gave us a much reduced home loan interest rate.
The team at Pepper are always incredibly helpful in any dealings that I have with them.
Read full reviewThe team at Pepper are always incredibly helpful in any dealings that I have with them.
Worst bank ever! We will be taking our business elsewhere!
Read full reviewWorst bank ever! We will be taking our business elsewhere!
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