Health Insurance Travel Insurance Tools & Calculators lowest variable 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. Star Rating - lowest first Star Rating - highest first Interest rate p.a. - lowest first Interest rate p.a. - highest first Comparison rate^ p.a. - lowest first Comparison rate^ p.a. - highest first Monthly repayment - lowest first Monthly repayment - highest first Up to $3,000 when you refinance with a Greater Bank home loan. Minimum loan amounts and LVR restrictions apply. Offer available until further notice. See provider website for full details. Exclusions, terms and conditions apply. Up to $3,000 when you refinance with a ME home loan. Minimum loan amounts and LVR restrictions apply. Offer available until 28/02/2027. See provider website for full details. Exclusions, terms and conditions apply. Up to $4,000 when you take out a IMB home loan. Minimum loan amounts and LVR restrictions apply. Offer available until further notice. See provider website for full details. Exclusions, terms and conditions apply. Up to $4,000 when you take out a IMB home loan. Minimum loan amounts and LVR restrictions apply. Offer available until further notice. See provider website for full details. Exclusions, terms and conditions apply. Showing 18 of 231 results Unsure of a term in the above table? View glossary 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. 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. 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. 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. 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. 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 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 Guarantee . 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 What kinds of home loans are available in Australia? 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. Are fixed or variable rate home loans more expensive? 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. Are the lowest variable home loan rates always the cheapest? 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 What is the cash rate and how does it affect you? Cash rate vs interest rate: how are they different? When will interest rates go down in 2026? Interest rate forecast and predictions for 2026 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 Explore more Home Loans: Home loan refinance cashback offers & deals Compare the big 4 banks in Australia Pre-approval home loans Compare loans.com.au home loans Refinance Home Loan Comparison Compare Investment Home Loan Rates Compare low deposit home loans Compare some of the best variable rate home loans Summerland Bank Home Loans & Rates Home loan options Family home guarantee scheme Unloan home loans About our home loan experts Alasdair Duncan, Deputy Finance Editor Joshua Sale, GM, Research 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. Home Loan Savings Calculations & Important Information Average rate based on RBA Lenders' Interest Rates for outstanding loans of 5.51% in Jan-26 plus 0.75% to account for cash rate increases. Minimum rate based on owner occupier variable loans available for a loan amount of $600,000, any LVR and principal & interest repayments; excluding introductory and other special condition loans. Repayment calculations assume a loan amount of $600,000 and a total loan term of 25 years. See here for Cost of Living Comparison. Advertiser Disclosure 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 Loans Star Ratings & Sort Order 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. Target Market Determination (TMD) 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? TMDs are compulsory for most financial products. 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. Canstar takes this responsibility seriously. As a distributor, we periodically review the TMDs of products we list on our website to help ensure our distribution channels are likely to result in the products reaching consumers within the relevant target market. This is one of the reasonable steps we take to comply with our obligations. We recommend that you consider the TMD before making a purchase decision. Contact the product issuer directly for a copy of the TMD. Detailed Disclosure & Comparison Rate Warning^ 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 . Comparisons not Recommendations 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. Modifying existing arrangements 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 “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. Licence Details & FSCG How we get paid Advertising Policy Conflicts of Interest Star Ratings and Awards Methodologies Advertising Services Complaints Process Any advice provided on this website is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you. Consider the Product Disclosure Statement and Target Market Determination before making a purchase decision. Canstar provides an information service. It is not a credit provider, and in giving you information about credit products Canstar is not making any suggestion or recommendation to you about a particular credit product. Research provided by Canstar Research AFSL and Australian Credit Licence No. 437917. You must not reproduce, transmit, disseminate, sell, or publish information on this website without prior written permission from Canstar.