Variable home loan rates

It is the full-feature version of a variable loan. The interest rate moves with the market in both directions, and the product carries an offset account, redraw and unlimited extra repayments. It is the loan most owner-occupiers end up with, and it usually prices above a stripped-back alternative.

A standard variable loan carries the full feature set, including an offset account. A basic variable loan strips most of that out in exchange for a lower rate and often no annual package fee. Which one costs you less depends entirely on whether you hold a balance worth offsetting.

Yes. A variable rate moves with the market in both directions, and your repayment moves with it. That is why lenders assess you at a rate above the one you will pay, and why we run your repayment at a higher rate before you commit rather than after.

Usually yes, and lenders differ on what they charge and how much notice they want. You can also fix part of the loan and leave the rest variable. The catch is that the fixed rate available at the time is the one you get, not the one that was on offer when you settled.

Redraw lets you take back extra repayments you have already made against the loan. An offset is a separate transaction account whose balance reduces the amount you pay interest on. Redraw funds sit inside the loan, offset funds sit beside it, and the difference matters for tax on an investment property.

It can, where the rate discount and the fee waivers on offset accounts and credit cards outweigh what the package costs each year. On a small loan the fee often does not pay for itself. It is arithmetic rather than a matter of opinion, and we run it for your loan size.

Regularly, because lenders compete hardest for new borrowers and an existing rate can quietly fall behind the market. A review costs you nothing and may simply confirm you are well placed. We diarise it rather than leaving you to notice the gap yourself.