Compare variable home loan rates

Looking for a competitive variable home loan rate? The table below displays a range of owner-occupier variable home loan rates from our Online Partners. The results are sorted first by comparison rate^ (lowest to highest), then by highest Star Rating and then alphabetically by brand.

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promoted
Fees & charges apply. Australian Credit Licence 237391.
5.54%
Variable
5.57%
$2,852
Principal & Interest
dot
Cashback up to $4,000*
dot
$0 application fees, monthly or annual fees
dot
Apply Online
Cashback
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 237391.
Fees & charges apply. Australian Credit Licence 237391.
promoted
Fees & charges apply. Australian Credit Licence 395219.
5.54%
Variable
5.58%
$2,852
Principal & Interest
dot
Available for purchase or refinance, min 10% deposit
dot
Fast turnaround times to meet tight settlement timeframes
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No application, ongoing or monthly fees.
Owner occupied
10% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 395219.
Fees & charges apply. Australian Credit Licence 395219.
promoted
Fees & charges apply. Australian Credit Licence 234945.
5.49%
Variable
5.40%
$2,836
Principal & Interest
dot
A simple low rate with an increasing discount.
dot
Apply in minutes. No Unloan Fees.
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Fee-free extra repayments and redraw.
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 234945.
Fees & charges apply. Australian Credit Licence 234945.
promoted
Fees & charges apply. Australian Credit Licence 230686. Products issued by ubank, part of NAB.
5.69%
Variable
5.71%
$2,899
Principal & Interest
dot
Easy application. Fast approval. No annual fee.
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Unlimited additional repayments free of charge.
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Products issued by Ubank, part of NAB
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 230686. Products issued by ubank, part of NAB.
Fees & charges apply. Australian Credit Licence 230686. Products issued by ubank, part of NAB.
promoted
Fees & charges apply. Australian Credit Licence 234945.
5.49%
Variable
5.40%
$2,836
Principal & Interest
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 234945. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 234945. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 237476.
5.49%
Variable
5.50%
$2,836
Principal & Interest
Cashback
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 237476. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237476. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 496431.
5.54%
Variable
5.55%
$2,852
Principal & Interest
Owner occupied
10% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 496431. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 496431. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 237391.
5.54%
Variable
5.57%
$2,852
Principal & Interest
Cashback
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 237391. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237391. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 395219.
5.54%
Variable
5.58%
$2,852
Principal & Interest
Owner occupied
10% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 395219. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 395219. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 237502.
5.69%
Variable
5.71%
$2,899
Principal & Interest
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 237502. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237502. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 230686. Products issued by ubank, part of NAB.
5.69%
Variable
5.71%
$2,899
Principal & Interest
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 230686. Products issued by ubank, part of NAB. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 230686. Products issued by ubank, part of NAB. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 237391.
5.64%
Variable
5.76%
$2,883
Principal & Interest
Cashback
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 237391. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237391. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 244533.
5.49%
Variable
5.85%
$2,836
Principal & Interest
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 244533. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 244533. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 395219.
5.49%
Variable
5.95%
$2,836
Principal & Interest
Owner occupied
10% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 395219. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 395219. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
promoted
Fees & charges apply. Australian Credit Licence 229500.
5.69%
Variable
6.08%
$2,899
Principal & Interest
Cashback
Owner occupied
20% min deposit
Redraw facility
Fees & charges apply. Australian Credit Licence 229500. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 229500. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR

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The initial results in the table above are sorted by Comparison rate^ p.a. (Low-High) , then Star Rating (High-Low) , then Provider Name (Alphabetical) . Additional filters may have been applied, which impact the results displayed in the table - filters can be applied or removed at any time.

promoted
Fees & charges apply. Australian Credit Licence 237391.
Interest rate p.a.
Comparison rate^ p.a.
Monthly repayment
5.54%
Variable
5.57%
$2,852
Principal & Interest
IMB Bank Budget Home Loan
Enjoy up to $4,000 cashback when you switch your eligible home loan to IMB Bank. Terms and Conditions Apply
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Fees & charges apply. Australian Credit Licence 237391. See Terms & Conditions. ^ Comparison Rate Warning. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR
Fees & charges apply. Australian Credit Licence 237391. See Terms & Conditions. ^ Comparison Rate Warning. Star Rating for a $500k owner occupier variable rate P+I loan at 80% LVR

What is a variable rate home loan?

A variable rate home loan is a home loan with an interest rate that can change. The interest rate can go up or down, meaning your repayments can also fluctuate. Lenders usually change rates in line with the cash rate as set by the Reserve Bank of Australia (RBA), along with other factors.

This is compared to a fixed rate home loan where the interest rate stays the same for a set period of time, usually between one and five years.

Another option is a split home loan, where a portion of your home loan has a fixed interest rate and the rest has a variable rate.

What are the features of a variable rate home loan?

Variable rate home loans usually offer more features than fixed rate home loans. Some features you may have access to include an offset account, the ability to make extra repayments, a redraw facility and packaged extras.

Offset account

An offset account is a bank account that is linked to your home loan. The account balance is offset against your home loan balance. This reduces the balance of your home loan and therefore reduces the interest you have to pay. For instance, if you had a home loan balance of $350,000, with $50,000 in a 100% offset account, you would only be charged interest on a loan balance of $300,000.

Ability to make extra repayments

Making additional repayments above your minimum repayments can reduce your home loan balance and reduce the amount of interest you pay. This could help you pay off your home loan quicker.

Redraw facility

A redraw facility lets you access any additional repayments you have made on your home loan. These funds can be taken out if you need them; for example, to cover renovations or other unexpected expenses.

Packaged extras

Some lenders offer packaged home loans that combine your home loan with other banking products, such as credit cards or everyday bank accounts. This may mean you pay only one package fee, rather than multiple fees across the different products. You may also get a discount on your interest rate. But it’s important to work out whether the potential savings are worth it overall.

What are the pros and cons of a variable rate home loan?

Variable home loans often come with more features than fixed home loans, which could offer you more flexibility and boost the value you get overall. But your interest rate can change at any time, meaning you have less certainty over your repayments.

Pros:

  • Flexibility. You may be able to make additional repayments above what you owe, which could help you pay off your home loan quicker.
  • Features. You may be able to get features like an offset account and redraw facility, as well as packaged extras.
  • You may benefit from interest rate cuts. If your lender decreases its interest rates, you could end up paying less each month or pay off your home loan quicker.

Cons:

  • You may have increased repayments. If your lender increases its interest rates, you may have to pay higher repayments.
  • Uncertainty. The interest rate can move at any time, so this can make budgeting more unpredictable.

Read more about the pros and cons of variable rate home loans.

How long does a variable rate home loan last?

Home loans are typically repaid over a period of 25 to 30 years. When you apply for a variable rate home loan, you will agree with the lender on the term and the repayment schedule. If you choose a shorter loan term, you will generally pay higher repayments but less in interest. If you choose a longer loan term, you will generally have lower repayments but will pay more in interest.

How to find the lowest variable home loan rate?

A loan’s interest rate is an important factor and it can make a significant difference to the total cost of the loan. But there are also other factors to consider. This includes any fees attached to the loan and the features available. It’s also important to weigh up if it’s worth paying for any features and whether they add value overall.

While you are comparing home loans, consider taking a look at Canstar’s Home Loan Star Ratings and Awards. Canstar’s expert researchers assessed thousands of home loans, including variable home loans, to see which ones offered the best value. If you are a first home buyer, you might also be interested in our latest First Home Buyer Award and finding out more about the First Home Loan Deposit Scheme

With a variable rate home loan, your interest rate can go up or down as the market changes. These home loans often come with more features than fixed rate home loans, which could give you greater flexibility for paying off your loan.

Canstar compares thousands of home loans from more than 80 lenders. If you’re considering a variable rate home loan, we’ve rounded up some of the lowest variable home loan rates currently on our database below.

We’ve included the current rates and comparison rates. The comparison rate takes into account the interest rate, plus most upfront and ongoing fees and charges. It can be helpful when estimating the total cost of a loan per year.

Please note that the interest rates below do not take into account your credit history or other factors specific to your application. That means not everyone may necessarily qualify for a lender’s minimum advertised rate. Further eligibility criteria may be assessed and determined by the lender.

 

Frequently Asked Questions about Variable Rate Home Loans

Generally speaking, there are three types of home loans available in Australia – fixed rate home loans, variable rate home loans, and split rate home loans, which are a combination of the other two.

Fixed rate home loans include a rate that’s set at a certain level and will not change for the term of the loan, be that for one, two, three or five years, or a different length of time.

Variable rate home loans have a rate that can fluctuate up and down, depending on factors such as the RBA cash rate and the business decisions of individual lenders.

Some home loan lenders offer split rate loans, which combine both fixed and variable components, allowing borrowers to take advantage of the features of both.

The cost of a home loan will be determined by the interest rate set by an individual lender, so there is no definite answer to whether fixed or variable rate home loans will always be cheaper. That said, fixed rates as a whole tend to be more expensive than variable ones, typically to account for the extra money that a lender might miss out on if rates were to rise.

Not necessarily when you take all loan costs into account. That’s why when you find a low variable home loan rate, it is important to check the comparison rate, to get a better idea of  the true cost of the loan.

The comparison rate of a loan is a number that lenders are required by law to display next to an interest rate, and it is intended to represent the true cost of a loan, when fees and charges are factored in, along with the interest rate.

A rate may appear cheap on paper, but when checking the comparison rate, you may indeed find that it’s ‘too good to be true’, and that it’s more expensive than some other loans on the market once fees and charges are factored in.

Latest in home loans

Canstar Star Ratings and Awards

Looking for an award-winning product or to switch providers or brands? Canstar rates products based on price and features in our Star Ratings and Awards. Our expert Research team shares insights about which products offer 5-Star value and which providers offer outstanding value overall. We also reveal which providers have the most satisfied customers in our dedicated Customer Satisfaction Awards.

Home Loan Awards  Refinance Home Loan Awards

About our home loan experts

Alasdair Duncan, Content Editor

Alasdair Duncan
Alasdair Duncan is Canstar's Content Editor, specialising in home loans, property and lifestyle topics. He has written more than 500 articles for Canstar and his work is widely referenced by other publishers and media outlets, including Yahoo FinanceThe New DailyThe Motley Fool and Sky News. He has featured as a guest author for property website homely.com.au. In his more than 15 years working in the media, Alasdair has written for a broad range of publications. Before joining Canstar, he was a News Editor at Pedestrian.TV, part of Australia’s leading youth media group. His work has also appeared on ABC News, Junkee, Rolling Stone, Kotaku, the Sydney Star Observer and The Brag. He has a Bachelor of Laws (Honours) and a Bachelor of Arts with a major in Journalism from the University of Queensland, and has completed a RG146 compliance training course. When he is not writing about finance for Canstar, Alasdair can probably be found at the beach with his two dogs or listening to podcasts about pop music. You can follow Alasdair on LinkedIn.

Joshua Sale, GM, Research

Joshua Sale
Joshua Sale is responsible for developing the methodology and delivering Canstar’s flagship Star Ratings, as part of Canstar’s Research Team. With tertiary qualifications in economics and finance, he enjoys helping Australians find more suitable financial products by transforming complex calculations into a consumer-friendly Star Rating that explains the values and benefits of different financial products. As one of Canstar’s company spokespeople, Joshua is confident participating in print, radio and broadcast journalism interviews. He has participated in interviews with the Australian Financial Review, news.com.au and Money Magazine, along with other leading media outlets, discussing topics such as home loan equity, banking incentive schemes, digital wallets and wider finance trends. You can follow Joshua on LinkedIn. Have a media enquiry, and interested in featuring Joshua as a financial expert and commentator? Contact Canstar’s Media Team today.

Important information

For those that love the detail

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.

Canstar may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it’s an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product's rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar. Payment of fees for ads does not influence our Star Ratings. See How We Get Paid to find out more. Payment of fees for ads does not influence our Star Ratings or Awards.

Home loan Star Ratings are updated daily. During periods of significant market fluctuations, such as adjustments to the reserve bank's cash rate, star rating updates will be paused for variable home loans until the market has stabilised. However, advertised interest rates of products will continue to be updated as advised by lenders. The results don’t include every provider in the market and we may not compare all features relevant to you. Current rates and fees are displayed and may be different to what was rated. You can find a description of the initial sort order below the table. You can use the sort buttons at the top of each column to re-order the display. Learn more about our Home Loans Star Rating Methodology. The rating shown is only one factor to take into account when considering products. The table defaults to display only home loans available to somebody borrowing up to 80% of the property value, but you can use the filters to change this. Similar products might have different features and fees depending on the amount you borrow. Contact the lender for details.

The products and Star Ratings in the table might not match your exact inputs in the selector. Sometimes the methodology uses profiles with categories or bands (e.g. income, loan amount or monthly spend), but sometimes a single methodology, without any categories or bands, is applied.  The results will show the products that most closely match your selection, based on our profiles. If you are unsure about any terms used in the comparison table please refer to the glossary.

What is a Target Market Determination?

A Target Market Determination (‘TMD’) is a document that explains which people particular financial products may be suitable for (the target market) and sets out any conditions around how financial products can be distributed to consumers.

Why do product issuers provide Target Market Determinations?

From 5 October 2021, TMDs are compulsory for most financial products.

Issuers and distributors of financial products must take reasonable steps that are likely to result in financial products reaching consumers in the target market defined by the product issuer.

We recommend that you consider the TMD before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. Canstar provides information about credit products. We’re not suggesting or recommending a particular credit product for you. If you decide to apply for a loan, you will deal directly with the provider, not with Canstar. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. It’s important you check rates and product information directly with the provider. For more information, read our Detailed Disclosure. ^Read the Comparison Rate Warning.

Canstar is not providing a recommendation for your individual circumstances. We cannot and do not recommend that any particular product is suitable for you. 

We provide links to our Online Partners. These are brands that may pay Canstar a fee for referring you. Our tables default to display only our Online Partners’ products initially, you can adjust the Online Partner Filter to see all of the products available for comparison on Canstar’s website. We provide these links so that you can click through to the product provider’s website to get more information. The provision of these links does not constitute a recommendation by Canstar.

Before you elect to terminate or modify existing lending arrangements, we recommend you consider (i) your personal circumstances, and (ii) any associated fees, exit costs and application costs that may be applicable as well as the impact these changes could have on you. We suggest you consider seeking independent advice from a qualified adviser.

“Interest-only loan” generally means a loan where you will only pay interest during the interest-only term. That means you won’t be making payments which reduce debt during the interest-only term.