Our database lists 242 products across 13 lenders. Variable mortgage rates range from 6.09% and 9.54% with varying fees.
Revisit this page weekly or bookmark it to learn the best variable mortgage rates available in Australia. The table below shows the rates as of [date] and may change at any time.
Variable mortgage rates
| COMPANY | TYPE | TERM | INITIAL RATE | THE OVERALL COST FOR COMPARISON IS | PRODUCT FEE | LOAN TO VALUE (LTV) |
|---|---|---|---|---|---|---|
| UBANK | 2 year Offset Tracker at BEBR + 1.22% for 2 years Residential Purchase Offset | 2 years | 5.97% | 6.9 APRC | £1749.00 | 75% |
| UBANK | 5 year Offset Tracker at BEBR + 1.25% for 5 years Residential Purchase Offset | 5 years | 6.00% | 6.7 APRC | £1749.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.15% for 2 years Rate | 2 years | 4.96% | 6.7 APRC | £999.00 | 60% |
| UBANK | 2 year Tracker at BEBR + 0.36% for 2 years Rate | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.76% for 2 years Rate | 2 years | 5.51% | 6.8 APRC | £999.00 | 85% |
| UBANK | 2 year Tracker at BEBR + 1.10% for 2 years Rate | 2 years | 5.85% | 6.8 APRC | £999.00 | 90% |
| UBANK | 2 year Tracker at BEBR + 0.50% for 2 years Premium Exclusive Rate | 2 years | 5.25% | 6.7 APRC | £0.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.35% for 2 years Rate | 2 years | 5.10% | 6.6 APRC | £1999.00 | 60% |
| UBANK | 2 year Tracker at BEBR + 0.55% for 2 years Rate | 2 years | 5.30% | 6.7 APRC | £1999.00 | 70% |
| UBANK | 2 year Tracker at BEBR + 0.57% for 2 years Rate | 2 years | 5.32% | 6.7 APRC | £1999.00 | 75% |
| UBANK | 5 year Tracker at BEBR + 0.60% for 5 years Rate | 5 years | 5.35% | 6.4 APRC | £999.00 | 60% |
| UBANK | 5 year Tracker at BEBR + 1.00% for 5 years Rate | 5 years | 5.75% | 6.6 APRC | £999.00 | 85% |
| UBANK | Residential Remortgage Offset Tracker at BEBR + 1.22% | 2 years | 5.97% | 6.9 APRC | £1749.00 | 75% |
| UBANK | Residential Remortgage Offset Tracker at BEBR + 1.25% | 5 years | 6.00% | 6.7 APRC | £1749.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.15% | 2 years | 4.96% | 6.7 APRC | £999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.36% | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.76% | 2 years | 5.51% | 6.8 APRC | £999.00 | 85% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.50% Premium Exclusive | 2 years | 5.25% | 6.7 APRC | £0.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.35% | 2 years | 5.10% | 6.6 APRC | £1999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.55% | 2 years | 5.30% | 6.7 APRC | £1999.00 | 70% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.57% | 2 years | 5.32% | 6.7 APRC | £1999.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.60% | 5 years | 5.35% | 6.4 APRC | £999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 1.00% | 5 years | 5.75% | 6.6 APRC | £999.00 | 85% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 4.89% | 6.6 APRC | £999.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.24% | 6.6 APRC | £0.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.25% | 6.6 APRC | £0.00 | 75% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.61% | 6.7 APRC | £99.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.21% | 6.7 APRC | £999.00 | 90% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.95% | 6.8 APRC | £0.00 | 90% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 5 years | 5.35% | 6.3 APRC | £999.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 5 years | 5.75% | 6.5 APRC | £999.00 | 85% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 2 years | 5.97% | 6.9 APRC | £1749.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 5 years | 6.00% | 6.7 APRC | £1749.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.10% | 6.6 APRC | £1999.00 | 70% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 2 years | 6.65% | 7.0 APRC | £1999.00 | 70% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.69% | 8.8 APRC | £1795.00 | 65% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.77% | 8.9 APRC | £1795.00 | 75% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 6.30% | 8.9 APRC | £0.00 | 75% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.90% | 8.8 APRC | £1795.00 | 60% |
Variable mortgage rates FAQs
What is a variable mortgage rate?
A variable home loan rate is an interest rate on a home loan that can change over time. The changeability of the rate is influenced by several factors. Below is a simple guide about this type of rate:
How do variable mortgage rates work?
- fluctuating interest rates: variable interest rates can rise or fall, affecting your monthly repayments
- influencing factors: standard variable rates are influenced by the Reserve Bank of Australia's official cash rate which may be boosted by inflation and other factors
- flexibility: borrowers can benefit from lower repayments when rates decrease, but face higher repayments if rates increase
How are variable mortgage rates calculated?
Variable mortgage rates depend on how much you owe, the interest rate, and the days in a year. If you owe $150,000 with an interest rate of 4%:
- daily interest: is calculated as $150,000 x 0.04 / 365, which equals $16.44 per day
- monthly interest: multiply daily interest by the number of days in the month to find your monthly payment
You can also use variable mortgage rate calculators that are available online or talk to your lender or mortgage adviser.
Additional features
Variable mortgage rates often come with additional features such as:
- extra repayments: the ability to make extra repayments without penalties, which can help reduce the loan balance faster
- redraw facilities: access to funds that have been paid more than the minimum repayment amount
Variable mortgage rates offer flexibility and potential cost savings, but they also carry the risk of increased repayments if interest rates rise. It's essential for borrowers to stay informed about economic factors that may impact their mortgage rate.
Is it worth getting a variable rate mortgage?
Variable mortgage rates can offer various benefits that may make them worth considering. These loans typically start with lower interest rates compared to fixed-rate mortgages, providing immediate savings.
- potential for lower rates: interest rates on variable mortgages can decrease, leading to reduced payments
- lower initial costs: initial interest rates are usually lower than fixed rates, resulting in less interest paid at the beginning
- versatile nature: variable rate loans often come with more flexible repayment terms and features
- unlimited repayments: you can make unlimited additional repayments without incurring break costs
- offset account: these loans typically allow for an offset account, which helps reduce interest charges
A variable mortgage rate can be beneficial if you expect interest rates to fall or if you want the flexibility to make extra repayments. These features can help you pay off your mortgage sooner and save on interest over time.
The suitability of a variable mortgage rate depends on your financial situation and goals. If you can handle potential rate increases and want more flexible loan features, a variable rate mortgage may be a good fit.
Does the Big 4 have good variable mortgage rates?
ANZ, CBA, NAB, and Westpac are key players in Australia's mortgage market and are known as the Big 4. These banks offer reliable services and a range of features, making them a popular choice for many borrowers but may offer less competitive rates. When considering variable home loan rates, Big 4 banks’ reliability and comprehensive options can be worth the potentially higher rates.
Overall benefits of choosing a variable mortgage rate
Variable mortgage rates can offer several advantages, such as lower initial payments, flexibility, and potential interest savings. It’s important to evaluate your financial circumstance and market conditions to determine if a variable rate mortgage is right for you.
Research or talk to a mortgage broker to find out the best variable home loan rates in Australia.
What is the disadvantage of a variable mortgage?
A significant disadvantage of variable mortgage rates is the uncertainty in monthly repayments. As rates fluctuate, borrowers may face financial strain due to unexpected increases. Key disadvantages of variable home loan rates include:
- unpredictable repayments: monthly payments can rise if interest rates increase
- rate fluctuations: lenders can adjust variable rates at any time
- cash flow uncertainty: the lack of predictability requires borrowers to have flexible cash flow management
- stress: rate hikes can cause financial stress
- need for a financing cushion: borrowers need to maintain a cash reserve to manage potential increases in loan repayments
- income dependency: managing variable rates effectively often depends on having a stable or rising income
Factors driving rate changes
Rates are influenced by market conditions and changes in a bank's funding costs, including interbank lending rates and investor demands.
Overall drawbacks of choosing variable home loan rates
The primary disadvantage of variable mortgage rates is the potential for increased repayments due to rate rises, leading to cash flow uncertainty and financial stress. Try to keep up with the latest interest rates’ movements or contact a mortgage broker to stay informed.
Is it better to go fixed or variable rate?
Deciding between a fixed or variable mortgage rate depends on your financial situation and risk tolerance. Each option has unique characteristics that may suit different needs.
Key differences between variable and fixed mortgage rates
Fixed rate home loans
- set interest rate: the rate remains constant for a specified period, usually 1 to 5 years
- budget certainty: fixed rates provide predictable repayments, aiding in financial planning
- no benefit from rate drops: you will not gain from potential decreases in interest rates
Variable rate home loans
- fluctuating rates: rates can change based on market conditions and the RBA’s cash rate
- potential for lower rates: if rates drop, your repayments may decrease
- features: variable loans often offer offset accounts and redraw facilities
Switching between rates
- fixed to variable: switching from a fixed to a variable rate can incur break costs if done before the fixed term ends
- variable to fixed: changing from a variable to a fixed rate is usually simpler, though other fees and charges may apply
Whether a fixed or variable mortgage rate is better depends on your need for stability versus flexibility and your comfort with potential rate fluctuations. Learn about Australia’s historical mortgage rates and assess your financial goals and risk tolerance. These may help you predict and prepare for potential rate increases.
