Variable Rate Home Loans

MortgageBiz has a range of flexible variable rate home loans to suit owner occupiers and investors.
Rate moves up or down in accordance with moves in interest rates.
Fewer loan features than a standard variable loan. 
Suitable for people who want to pay off a consistent amount full term.

Why choose a variable rate home loan?

The interest rate changed on a variable loan moves up or down in accordance with movements in interest rates, as set by the Reserve Bank with movements in interest rates, as set by the Reserve Bank which is most often closely followed by lenders. Basic variable loans generally have fewer features than a standard variable loan.  
Make extra repayments
Get ahead on your loan with no cap on extra repayments.
Save interest with an offset
Keep funds in an offset facility to reduce the amount of interest you pay on your loan balance.
Redraw additional funds
Redraw any additional repayments you've made if you need access to extra cash.
Combine with a fixed rate
Put your balance into separate fixed and variable rate accounts for the best of both worlds.

Our Home Loan Process makes refinancing simple so you can stop paying too much on your loan. Go from application to settlement in a few steps.
1. Apply online
Our loan application process is entirely online via our innovative web app.
2. Talk to a lending specialist
Talk to a lending specialist in our Australian-based call center.
3. Goodbye paperwork!
Upload your documents and track your progress in app.
4. Quick pay out
Upload your documents and track your progress in the app.
5. Smart Money
Access your new account via Online Services.

Get started

Apply online or speak to one of our Australian based loan specialists who will take care of all the paperwork for you. Applying is easy and we can settle your loan quickly so you start saving sooner. With you can have confidence in dealing with Australia's largest non-bank lender.
How much can I borrow?
It takes less than 3 minutes to calculate your borrowing power!
Ready to apply or want pre-approval?
Give us a call on 1300 740 032 or start an online application.

Frequently Asked Questions.

Some of the frequently asked questions are here, if you have more questions feel free to contact us. 
What is a variable rate home loan?
A variable rate home loan is a home loan with an interest rate that may change over time. If you choose a variable rate home loan, you may be able to take advantage of any interest rate decreases over your loan’s term. If your rate decreases, it means you pay less interest on the home loan balance.

On the other hand, you may also find that your rate increases, which would involve paying a higher interest rate and regular repayment amount than at the start of your loan term.
How is a variable interest rate calculated?
We calculate your interest in two steps.

First, we multiply the balance on your loan by your interest rate and divide it by 365 days in a year. This shows your daily interest charges.

We then add together your daily interest charges for every day in each month, which produces the monthly interest charge shown on your statement.

Finally, we divide this up according to your preferred repayment frequency, whether that’s weekly, fortnightly, or monthly. This figure is your repayment amount.

If your loan balance was $500,000 with an interest rate of 4.93% p.a. and monthly repayments, the calculation might look like this:

500,000 x 0.0493 / 365 = $67.53 interest per day
$67.53 x 30 days in September = $2,026 interest for September
What is the difference between fixed and variable interest rates?
Fixed interest rates differ from variable interest rates in that they do not change over the fixed interest rate term of the loan (1-5 years). Fixed rates allow you to lock in some certainty about your rate and how much your repayments will be over the fixed-rate term. They also mean you don’t take advantage of any potential decreases in your home loan interest rate, which is one potential benefit of a variable rate loan.
Can I switch from fixed to variable?
In most cases, if you have a fixed rate home loan, you will be able to switch part or all your balance to a new variable rate loan. Note that this may incur break costs if you are making the change before the end of the fixed-rate term.

It is also possible to switch all or part of a variable home loan balance to a fixed rate if you want to. Break costs don’t apply when switching from variable to fixed, although you may need to pay other fees.
What is a split home loan?
A split home loan is when you separate your home loan balance into two different accounts, one with a variable interest rate and one with a fixed interest rate.

Splitting your home loan balance with a fixed and variable interest rate allows you to get the best of both worlds. With the fixed portion of your home loan, you can lock in your interest rate and be certain that your repayment amounts won’t change for the duration of the fixed-rate term.

The variable rate portion of your loan lets you take advantage of any interest rate decreases and get ahead with no limit on the amount of extra repayments you can make.

Need some help?

Our experts will help you search, choose and settle your home loan online. Chat to one of our Home Loan Specialists at a time that suits you.