Compare the best variable rate home loans

Variable rate home loans have lower interest rates and often come with great features like offset accounts. Compare variable home loan rates from 5.24%.

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What you need to know

  • Variable rate home loans can go up or down throughout the life of your loan.
  • Variable rates mean that your repayments can change month to month.
  • Right now, variable interest rates are the most competitive rates in the market.

Compare variable home loan rates

$
years
Name Interest Rate p.a. Comparison Rate p.a. Fees Monthly Payment
Principal & Interest20% min. depositOwner-occupierRefinancers only
Interest Rate
5.34%
Comparison Rate
5.25%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$838
Go to siteMore Info
Finder AwardPrincipal & Interest10% min. depositOwner-occupier
Interest Rate
5.49%
Comparison Rate
5.50%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$852
Go to siteMore Info
Principal & Interest40% min. depositInvestment
Interest Rate
5.59%
Comparison Rate
5.62%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$862
Go to siteMore Info
Principal & Interest20% min. depositInvestmentRefinancers only
Interest Rate
5.64%
Comparison Rate
5.55%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$866
Go to siteMore Info
Principal & Interest20% min. depositInvestment
Interest Rate
5.69%
Comparison Rate
5.72%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$871
Go to siteMore Info
Principal & Interest5% min. depositOwner-occupierOffset accountSpecial Offer
Interest Rate
5.34%
Comparison Rate
5.37%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$838
Go to siteMore Info
Principal & Interest40% min. depositOwner-occupier
Interest Rate
5.39%
Comparison Rate
5.42%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$843
Go to siteMore Info
Principal & Interest20% min. depositOwner-occupierOffset account
Interest Rate
5.49%
Comparison Rate
5.53%
Fees
Application: $595
Ongoing: $0 p.a.
Monthly Payment
$852
Go to siteMore Info
Get up to $3,000 refinance cashback when your LVR is 90% or lower ($2,000 cashback for loan amounts of $250K+ and above, $3,000 for $500K+). Other conditions apply.
Principal & Interest20% min. depositOwner-occupier
Interest Rate
5.49%
Comparison Rate
5.52%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$852
Go to siteMore Info
Principal & Interest5% min. depositOwner-occupier
Interest Rate
6.24%
Comparison Rate
6.27%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$924
Go to siteMore Info
Principal & Interest-10% min. depositOwner-occupierNSW, QLD & ACT only
Interest Rate
5.39%
Comparison Rate
5.40%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$843
Go to siteMore Info
$3,000+ cashback offer
Customers borrowing at least $250,000 can get between $3,000 and $4,000 in cashback (purchase and refinance). Terms and conditions apply
Principal & Interest20% min. depositOwner-occupier
Interest Rate
5.44%
Comparison Rate
5.45%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$847
Go to siteMore Info
Up to $4,000 cashback offer
Eligible refinancers can get $2,000 cashback for loans $250k to $500k, or $4,000 for loans $500k+. Terms and conditions apply.
Principal & Interest40% min. depositOwner-occupierOffset accountSpecial Offer
Interest Rate
5.24%
Comparison Rate
5.27%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$829
Go to siteMore Info
Principal & Interest20% min. depositOwner-occupierOffset account
Interest Rate
5.64%
Comparison Rate
5.99%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$866
Go to siteMore Info
Get up to $3,000 refinance cashback when your LVR is 90% or lower ($2,000 cashback for loan amounts of $250K+ and above, $3,000 for $500K+). Other conditions apply.
Principal & Interest20% min. depositOwner-occupier$1M+
Interest Rate
5.69%
Comparison Rate
5.71%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$871
More Info
Principal & Interest40% min. depositOwner-occupierOffset account$500k to $750k
Interest Rate
5.54%
Comparison Rate
5.69%
Fees
Application: $300
Ongoing: $10 per month
Monthly Payment
$857
More Info
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How to compare variable rate home loans

Using Finder's comparison tables you can compare multiple features of variable rate home loans. Here's what to look out for:

1. Interest rates

The first thing to look at is the interest rate, as this will determine how much your repayments will be. The lower the rate, the better: noting that the rate will fluctuate throughout the life of your loan and could go higher. But remember that the interest rate should not necessarily determine your decision alone.

2. Comparison rates

You may be drawn in by a particularly low interest rate, but make sure you look at the comparison rate too. This rate takes into account any additional fees and charges attached to the loan, meaning it provides a more accurate reflection of the interest rate you'll pay. Note that the comp rate is always based on a loan value of $150,000, so it's now always the most accurate reflection of your situation, but it's a good guide.

3. Fees and charges

If the comparison rate is much higher, take a look at the fees and charges included. The key ones to watch out for are application fees, monthly or ongoing fees and settlement fees.

4. Loan features

Take a look at whether your variable rate home loan will come with features like an offset account or redraw facility.

Types of variable home loan products

Most lenders offer multiple variable rate home loans. But which type is best for you?

  • Basic variable home loans. A basic variable loan has a lower rate than a lender's other products (usually) and doesn't have as many features. If you want a simple variable rate loan with no offset account, a basic loan is a good option.
  • Introductory discount home loans. These loans (sometimes called honeymoon home loans) are often the lowest variable rate loans a lender offers. But after that initial discounted period, the rate will revert to a higher variable rate.
  • Package home loans. These loans let you combine your mortgage with a transaction account (usually an offset account) plus a credit card or other financial products. In exchange, you can get waived or discounted fees on the products and the convenience of having all your bank products in one place. The downside? You pay an annual package fee of several hundred dollars.
  • Standard variable home loans. Standard variable rates are a bit of a throwback. These are the benchmark variable rates used for home loans with the Big Four banks and some other lenders. Most lenders discount the actual rate you get or will recommend a similar loan with a lower rate.

What's the difference between fixed rate and variable rate home loans?

A variable interest rate home loan is a loan where the repayments can rise or fall each month, depending on whether the lender decides to change the interest rate. This is the opposite of a fixed rate home loan, which remains the same for a set period of time.

Variable rates

Variable rate mortgages

A variable rate loan can change at any time. In 2022 lenders increased their variable rate loans 8 times! However, these loans almost always have lower interest rates than fixed rate loans.

There are no break fees for exiting a variable rate loan early and these loans are much more likely to come with offset accounts or let you make extra repayments.

Fixed rate

Fixed rate mortgages

A fixed rate won't change (until the fixed period ends). This gives you certainty in knowing what your repayments will be. However, you will likely have a higher interest rate because of this.

Exiting a loan during the fixed period incurs a break cost. Depending on your loan size and how long you've fixed for, this can cost hundreds or even thousands of dollars.

The lowest variable rate vs the lowest fixed rate loan over time

This simple graph shows how the lowest variable rate loan compares to the lowest fixed rate loan.

Most of the time, variable rates are the market's lowest rates. Fixed rate loans only become lower in very rare circumstances.

Fixed vs variable rates: What are the differences?

Still unsure? Consider the split loan option

Australian borrowers don't have to pick between variable and fixed. Many lenders allow you to split your loan into fixed and variable portions.

How do I know if variable rates are going to rise or fall?

Lenders are free to move your variable interest rate up or down whenever they want. In practice, lenders move rates in response to wider market and economic conditions.

While you can't really predict rate changes perfectly, it is possible to get a good sense of which direction rates are moving in.

The Reserve Bank

The Reserve Bank of Australia (RBA) sets the official cash rate each month. This is a benchmark for lenders to set interest rates on variable rate home loans.

The RBA lowers interest rates to stimulate economic growth and encourage spending. When inflation is high, the RBA raises rates to cool spending and drive prices down.

Rates are currently rising (fast)

The RBA began lifting the cash rate in May 2022 and has not stopped since. This has meant that anyone on a variable interest rate has seen their mortgage rates rise too.

So far there has been little reprieve for borrowers, with interest rates changing every month since May, apart from January when there is traditionally no meeting.

Economists had predicted only 1 or 2 more interest rate rises in 2023, but this has since been revised and more are expected.

Is it a good time to get a variable rate home loan?

The lowest variable home loan rate on Finder is 5.24%.

The average variable home loan rate on the market is 5.61%.

With interest rates expected to rise further in 2023, the thought of taking out a variable rate loan which will inevitably increase might seem like a bad move. But interest rates are expected to fall again. Fixed rates are typically higher than variable rates and so locking yourself into a fixed rate would mean you don't benefit from falling rates in the future.

How to find the best variable rate home loan for you

The best variable rate home loan depends on your requirements as a borrower. But in general you want a loan with a low rate, low fees and features you need.

1. Get a low interest rate (and low fees)

With any home loan, a lower interest rate makes for a better home loan. A lower rate means lower repayments and it makes your home loan cheaper.

Here's a quick example using the same loan amount but with a 0.30% difference in the rate:

DetailsHigher rateLower rate
Loan amount$600,000$600,000
Loan term30 years30 years
Interest rate5.65%4.85%
Monthly repayments$3,464$3,167
Savings (monthly)N/A$297
Savings (yearly)N/A$3,564

You can use a repayment calculator to see the difference between various rates or check the repayment column in the loan table above.

A variable rate home loan can come with a range of fees. If the loan works for you and the interest rate is low, a few fees aren't so bad. But if you can avoid fees then why pay more?

2. Pick the right loan purpose and loan type

Even the lowest rate on earth is not very useful if you have the wrong loan type. If you're looking to finance an investment property then you will need an investment loan. If you're buying or refinancing a loan for the home you live in then you need an owner-occupier home loan.

3. Get a loan with the right features

Variable loans often come with useful features that give you more control over your mortgage.

  • Offset. By putting your savings into an offset account you will reduce the amount of your loan you are paying interest against, saving you a lot of money.
  • Extra repayments. Variable rate mortgages allow you to make extra repayments. This means you can get out of debt faster and pay less interest.
  • Redraw. If you have made extra repayments but suddenly need to pull them out to cover an emergency, a loan with a redraw facility lets you do just that.
  • Cashback. Many lenders are offering incentives like cashback, where you get money paid back to you. Usually between $1,000 and $4,000, you can use this money towards your home loan amount or for something like renovating your property.
  • Home loans packages. If you need to roll more than one loan under the same umbrella – like if you have investment properties – you may be able to get this as a package.

Finder's top variable rate home loan picks June 2023

Every month we look at all the variable rate home loans offered by our commercial partners at Finder. We evaluate these loans based on their interest rates, fees and minimum deposit size.

Our top picks are divided into 3 categories based on different borrowers' needs: first home buyer, refinancer and investor.

How we picked these loans

Keep in mind that these top picks are chosen from our commercial partners and not the entire home loan market. Based on your personal circumstances, there may be better loans for you than the ones we've highlighted here. Always compare your options before you apply.

Here are the details about our methodology:

Nicole-Pedersen-McKinnon
This article was fact-checked and reviewed by , an accredited and award-winning finance broker and industry mentor. Content has been updated for 2023.

Compare variable home loan rates

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    20 Responses

      Default Gravatar
      KeithOctober 4, 2019

      We have a current Reverse Mortgage with Bankwest which was established several years ago. Can you tell me what the current rate is we would be incurring and if it is a Variable Rate and any hidden charges involved.

        Default Gravatar
        NikkiOctober 6, 2019

        Hi Keith,

        Thanks for getting in touch! It is helpful to know that while we compare variable rate home loans on our page, we do not have the actual current rate is per lender and in this case, Bankwest. It would be best to get in touch with your preferred lender to obtain more information on monthly repayments.

        Hope this clarifies! Feel free to reach out to us again for further assistance.

        Best,
        Nikki

      Default Gravatar
      NHAugust 30, 2018

      I am wanting to consolidate all my outstanding into my home loan. I also want to change my financial institution to have a better lower interest rate. Also will it be better to have variable or fixed with what I am wanting to do? Please can you help?

      Thanks

        Avatarfinder Customer Care
        JoshuaAugust 30, 2018Staff

        Hi NH,

        Thanks for getting in touch with Finder. I hope all is well with you. :)

        Let me address your concerns one by one.

        1. I am wanting to consolidate all my outstanding into my home loan.

        You may want to consider refinancing to consolidate debt. This type of home loan allows you to pay out your credit card and personal loans under your mortgage. Instead of paying off multiple debts, you pay off all of your debts with one home loan repayment each month. This also means your debts are only charged at a home loan interest rate – which can be much lower than a credit card or personal loan interest rate.

        2. I also want to change my financial institution to have a better lower interest rate.

        Please refer to the guide I shared with you above. When you’re on the page, please refer to the table under the subheading “Which lenders offer debt consolidation options when refinancing?” By doing so, you will see different financial institutions that might be able to help you.

        3. Also will it be better to have variable or fixed with what I am wanting to do?

        While we can’t provide personalised recommendations, it would be a good idea to know the difference between fixed and variable home loans.

        On that page, you will know more about variable and fixed interest home loans, which include their advantages and disadvantages.

        Finally, please speak to a mortgage broker to help you explore your different options. They have the right skills and knowledge to ensure you make the right decision.

        I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

        Have a wonderful day!

        Cheers,
        Joshua

      Default Gravatar
      SafiaOctober 17, 2017

      How many financial institution offer construction loans and what are things to look out for before choosing a financial institution.

        Default Gravatar
        MariaOctober 17, 2017

        Hi Safia,

        Thanks for reaching out to Finder.

        You may want to check out lenders from our Construction Loans page. It also includes tips and information on how to choose a construction loan and some other frequently asked questions which you can find at the bottom of the page.

        Before applying, please ensure that you meet the eligibility criteria and requirements and to read the details, as well as the relevant Product Disclosure Statements/ Terms and Conditions of the option before making a decision and consider whether the product is right for you.

        Once you’ve chosen a lender, you may click on “Go to Site” to be directed to their main website where you can start your application.

        Best,
        Maria

      Default Gravatar
      JamesAugust 3, 2017

      So I just re-financed my home to go to a cheaper rate at a diffrent bank and my property got valued at 600.000 when I only have 300,000 left on property so where does the other 300,000 go.can I take some for me and put in on top of the loan for eg: 50k for me then loan will be 350,000 instead of 300,000 since I don’t need the whole 600,000 to move over

        Default Gravatar
        LiezlAugust 3, 2017

        Hi James,

        Thanks for your question.

        The difference of $300,000 is your home equity which you can use for investment purposes or for a wide variety of reasons such as pay up-front university fees for your children, for an extended overseas holiday, or home repairs and cosmetic renovations. For more details, please feel free to read our guide on refinancing home loans.

        Cheers,
        Liezl

      Default Gravatar
      CarolJune 17, 2016

      Hi If I reach retirement age and still have a home loan of say $100000, what is the longest term you can pay interest only repayments?
      Thanks
      Carol

        Avatarfinder Customer Care
        MarcJune 20, 2016Staff

        Hi Carol,

        thanks for the question.

        This will depend on the lender, as each will have its own unique lending criteria. It might be a good idea to consult a mortgage broker to find out the longest term available to you for your situation.

        I hope this helps,
        Marc.

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