Your selected home loans
2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
Read our Mozo Review to learn more about the Smart Booster Home Loan
Owner Occupier, Principal & Interest, LVR <60%
Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) 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) 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
<60% LVR, Owner Occupier, Principal & Interest
Rates have moved in line with RBA. Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.
Rates have moved in line with RBA. Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Owner Occupier, Principal & Interest, LVR <80%
$5000 refinance cashback. Owner-occupier refinancers only living in NSW/VIC/SA metro and inner regional areas. Receive up to an additional 0.15% off your rate as you pay off the loan. Receive bonus payments up to $2,500. T&Cs apply.
$5000 refinance cashback. Owner-occupier refinancers only living in NSW/VIC/SA metro and inner regional areas. Receive up to an additional 0.15% off your rate as you pay off the loan. Receive bonus payments up to $2,500. T&Cs apply.
Read our Mozo Review to learn more about the Variable Rate Home Loan
Owner Occupier, Principal & Interest
Purchase and Refinance. No upfront or ongoing fees. Fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet. 20% deposit or equity required. Mozo Experts Choice winner for Best New Home Loan and Low Cost Home Loan 2022. 18 years and over.
Purchase and Refinance. No upfront or ongoing fees. Fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet. 20% deposit or equity required. Mozo Experts Choice winner for Best New Home Loan and Low Cost Home Loan 2022. 18 years and over.
Read our Mozo Review to learn more about the Variable Home Loan
Owner Occupier, LVR<60%, Principal & Interest
Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.
Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.
Read our Mozo Review to learn more about the Basic Home Loan
Owner Occupier, Principal & Interest, LVR <80%
Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st May 2022.
Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st May 2022.
Read our Mozo Review to learn more about the Variable Home Loan Special
LVR<70%, 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 <60%, Refinance Only
A great option for refinancers looking for an alternative, the G &C Mutual Bank’s Momentum Home Loan offers a competitively low rate for a fixed period. It features a 100% offset account in addition to unlimited extra repayments.
A great option for refinancers looking for an alternative, the G &C Mutual Bank’s Momentum Home Loan offers a competitively low rate for a fixed period. It features a 100% offset account in addition to unlimited extra repayments.
Read our Mozo Review to learn more about the Momentum Home Loan
Owner Occupier, Principal & Interest, LVR <70%
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 May 2022 and settle by 31 July 2022.
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 May 2022 and settle by 31 July 2022.
Read our Mozo Review to learn more about the Discounted Home Value Loan
Owner Occupier, Principal & Interest, <70% LVR, $150,000+
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%. Apply by 30 June 2022, settle by 30 September 2022, and receive $3,000 cashback (T&Cs apply).
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%. Apply by 30 June 2022, settle by 30 September 2022, and receive $3,000 cashback (T&Cs apply).
Read our Mozo Review to learn more about the Economy Variable Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
A super low introductory rate home loan with no monthly or ongoing fees. loans.com.au has some of the fastest settlement times on the market. They can meet 30-day settlement timeline so you can start saving thousands, as soon as possible! Mozo award-winning online lender, friendly and local Australian based team.
A super low introductory rate home loan with no monthly or ongoing fees. loans.com.au has some of the fastest settlement times on the market. They can meet 30-day settlement timeline so you can start saving thousands, as soon as possible! Mozo award-winning online lender, friendly and local Australian based team.
Read our Mozo Review to learn more about the Smart Booster Home Loan
Investment, Principal & Interest, LVR <80%
Yard’s Investor Bundle home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application. Special investor rate applies to combined home loan and investor bundles only (conditions apply).
Yard’s Investor Bundle home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application. Special investor rate applies to combined home loan and investor bundles only (conditions apply).
Read our Mozo Review to learn more about the Investor Bundle Variable Home Loan
Owner Occupier, Principal & Interest, LVR 70-80%
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 May 2022 and settle by 31 July 2022.
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 May 2022 and settle by 31 July 2022.
Read our Mozo Review to learn more about the Discounted Home Value 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 and Interest Only
Competitive variable interest rate. No establishment or ongoing monthly fees to pay. Optional offset account available for 0.10%. Unlimited redraws. Extra repayments allowed. No minimum loan amount.
Competitive variable interest rate. No establishment or ongoing monthly fees to pay. Optional offset account available for 0.10%. Unlimited redraws. Extra repayments allowed. No minimum loan amount.
Read our Mozo Review to learn more about the Choice 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. Refinance and get up to $3,000 cashback. LVR ≤90%. $2,000 cashback for loans ≥ $250k, plus bonus $1,000 for loans ≥ $500k. 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. Refinance and get up to $3,000 cashback. LVR ≤90%. $2,000 cashback for loans ≥ $250k, plus bonus $1,000 for loans ≥ $500k. Limited time offer extended, T&Cs apply.
Read our Mozo Review to learn more about the Discounted Variable Home Loan
60-70% LVR, Owner Occupier, Principal & Interest
Rates have moved in line with RBA. Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit.
Rates have moved in line with RBA. Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit.
Read our Mozo Review to learn more about the Evaporate Variable Home Loan
Owner Occupier, LVR<60%, Principal & Interest
Flexible loan structure. Ability to open up to 10 offset accounts per loan account. Includes a Debit Mastercard and transaction account for everyday transactions. All ATM fees in Australia are instantly refunded.
Flexible loan structure. Ability to open up to 10 offset accounts per loan account. Includes a Debit Mastercard and transaction account for everyday transactions. All ATM fees in Australia are instantly refunded.
Read our Mozo Review to learn more about the Offset Home Loan
Owner Occupier, Principal & Interest, LVR <60%
Competitive variable rates. Free extra repayments and redraws. No Lender’s Mortgage Insurance. Multiple offset accounts available. Fast digital application. 40% deposit required.
Competitive variable rates. Free extra repayments and redraws. No Lender’s Mortgage Insurance. Multiple offset accounts available. Fast digital application. 40% deposit required.
Read our Mozo Review to learn more about the Own Home Loan
^See information about the Mozo Experts Choice Home loans Awards
*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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See all home loan providersAre 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 that you'll pay less in interest.
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:
Compared to their fixed rate counterparts, 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. But that doesn’t mean you should choose the first offer that you see. In fact, by taking the time to shop around for 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 rates 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, as well as 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.
Many variable home loans come with rate tiers, which means that the borrower will be offered a different rate depending on what criteria they meet. For variable rate home loans, there are two main conditions that could influence the rate you end up with: 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 customers who borrow more money. So the higher your loan amount, the more competitive the interest rate may 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 could affect your home loan rate 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. There has also been a growing trend of lenders introducing even more competitive rates at lower LVR tiers of up to 70% or 60%. On the flipside, if you haven’t saved up a big deposit, some loans will allow you to borrow up to 90% or 95% of the property value. But this increased risk to the lender means that you may have to pay a higher interest rate and also be required to bear the hefty cost of lenders mortgage insurance.
Both fixed and variable rate home loans will have their pros and cons. As a borrower, it’s important not to try and ‘time the market’ but rather to review all options carefully and choose one that is going to best suit your financial situation or comfort level.
For instance, if you are nervous about the impact that a rate rise will have on your household finances, then opt to fix some or all of the loan. A key advantage of fixed rate home loans is that your repayments won’t change over the term of your loan, making budgeting easier.
However if flexibility matters more to you than certainty, then a variable rate home loan may be more suitable. The pros of a variable interest rate include:
Lower repayments if interest rates fall
Extra features such as an offset account and the ability to make unlimited fee-free extra repayments, which can save you money over the life of your loan.
Then what about if you want the best of both worlds? Some lenders give borrowers an option to split their home loan between a fixed rate and a variable rate. This allows you to lock away a portion of your home loan to protect yourself if interest rates rise, but you also get to use the variable portion of your loan to get the most out of flexible features.
Variable rates tend to follow the fluctuations of the broader economy. If market interest rates drop, the variable rate charged on your home loan may also drop. On the flipside, if market rates rise, your lender may hike up your variable rate to match.
This is exemplified whenever the Reserve Bank of Australia (RBA) reduces the official cash rate. Many lenders follow suit by passing the full cut or a partial cut onto your home loan. It’s worth noting though that such a move isn’t compulsory; instead it’s recommended and can help the lender stay competitive.
With this in mind, taking out a variable rate home loan does mean you’ll have to prepare for possible increases in interest rates, but it also means that you could benefit from any interest rate cuts that you might not have with a fixed 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, an unlimited number of free extra repayments and free redraws.
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, 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. In the 2021 awards, our expert judges assessed 304 variable rate owner occupier home loans for the Low Cost Home Loan category in order to find the best of the bunch. Investors weren't left off the table either, with 249 variable rate investment loans considered for the Investor Home Loan category.
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 find options based on your requirements including interest rate type, your borrowing size and the value of your property.
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.
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.
Never trust the banking app and the repayments requirements for a loan through the app. Never contact the customer for missed or shortfall in repayment. The bank will let it go until it damages your credit rating. Worst customer service.
Read full reviewNever trust the banking app and the repayments requirements for a loan through the app. Never contact the customer for missed or shortfall in repayment. The bank will let it go until it damages your credit rating. Worst customer service.
I came over to BankWest 6 months ago and it is the best decision I made. Easy online banking, amazing service, great home loans, the best online chat assistance. The best bank, totally recommended.
Read full reviewI came over to BankWest 6 months ago and it is the best decision I made. Easy online banking, amazing service, great home loans, the best online chat assistance. The best bank, totally recommended.
Smooth process and good customer service
Read full reviewSmooth process and good customer service
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Your selected home loans