Navigating the world of home loans can be daunting, but variable home loan rates offer a beacon of flexibility and potential savings. While their fluctuating nature might seem intimidating, these rates can be your ticket to financial agility. In this blog, we’ll unravel the secrets to securing the best variable home loan deals in Australia, equipping you with the knowledge and strategies to confidently ride the waves of interest rate changes. Let’s turn uncertainty into opportunity!

Variable Home Loan Rates Explained

Variable home loan rates are interest rates that can change over time based on the market’s movements. Unlike fixed rates, which remain constant for a set period, variable rates can go up or down, influencing your monthly repayments.

What Are Variable Home Loan Rates, and How Do They Differ from Fixed Rates?

Variable home loan rates fluctuate according to the official cash rate set by the Reserve Bank of Australia (RBA). When the RBA adjusts the cash rate, lenders typically follow suit, altering their variable rates. In contrast, fixed rates remain unchanged for an agreed term, providing predictability in repayments.

What Are the Benefits and Risks Associated with Variable Home Loan Rates?


  • Potential for Lower Rates: If interest rates fall, your repayments decrease.
  • Flexibility: Many variable-rate loans offer features like extra repayments, redraw facilities, and offset accounts.
  • No Break Costs: Unlike fixed-rate loans, there are usually no penalties for paying off your loan early.


  • Uncertainty: Rates can increase, leading to higher repayments.
  • Budgeting Challenges: The unpredictability can make it harder to budget for the long term.

Fixed vs. Variable:

Fixed Rate:

  • Advantages: Predictable repayments, protection from rate increases.
  • Drawbacks: Less flexibility, potential for higher long-term costs if rates drop, possible large fees if you break a fixed contract.

Variable Rate:

  • Advantages: Potential for lower repayments, more flexibility.
  • Drawbacks: Uncertainty in repayments, potential for increased costs if rates rise.

Key Features:

Variable-rate home loans often come with flexible features that cater to different financial needs. These can include:

  • Extra Repayments: Pay more than the minimum without penalties, helping to reduce your loan term and interest paid.
  • Redraw Facilities: Access extra repayments if needed, providing a safety net for financial emergencies.
  • Offset Accounts: Use your savings to reduce the interest calculated on your loan balance, effectively lowering your repayments.

Finding the Best Deals for Variable Home Loans

Securing the best variable home loan rate involves strategic comparison and seeking expert advice. Here are some steps to guide you:

Comparing Lenders:

When comparing lenders, consider the following criteria:

  • Interest Rates: Look for competitive rates, but also consider the comparison rate, which includes fees and charges.
  • Loan Features: Evaluate the flexibility offered by different features like extra repayments, offset accounts, and redraw facilities.
  • Fees: Be aware of upfront fees, ongoing fees, and discharge fees.
  • Customer Service: Assess the lender’s reputation for customer support and service quality.

Personalised Support:

Working with a mortgage broker like Will Bell can significantly enhance your search for the best variable rates. Brokers have access to a wide range of lenders and can offer tailored advice based on your financial situation.

Benefits of Consulting a Mortgage Broker:

  • Expertise: Brokers understand the market and can identify the best deals.
  • Time-Saving: They handle the legwork of comparing loans and negotiating with lenders.
  • Personalised Advice: Brokers provide advice tailored to your financial goals and circumstances.

Can I Switch From Fixed to Variable?

Yes, you can switch from a fixed-rate to a variable-rate home loan. However, it’s essential to consider the potential costs, such as break fees associated with exiting a fixed-rate loan early. 

Consulting a mortgage broker can help you weigh the pros and cons and determine if switching is the right move for you.


Variable home loan rates offer a blend of flexibility and potential savings, making them an attractive option for many borrowers. However, the key to maximising their benefits lies in understanding their dynamics and carefully selecting the right lender. Consulting a mortgage broker like Will Bell can provide the expertise and personalised support needed to navigate the complexities of variable rates confidently. 

Will Bell Mortgage Broker is dedicated to helping Australians secure the best home loan deals. With our in-depth knowledge and commitment to client satisfaction, we ensure you make informed decisions tailored to your financial goals. 

Visit Will Bell Mortgage Broker to learn more about our services and how we can assist you in finding the best variable home loan rates.

Frequently Asked Questions About Variable Home Loan Rates:

A split home loan divides your mortgage into two portions: one with a fixed rate and one with a variable rate, offering a balance of stability and flexibility.

As of recent data, around 70% of Australian mortgages are variable rate, reflecting their popularity among borrowers.

The suitability of a variable-rate mortgage depends on your financial situation and risk tolerance. They offer potential savings and flexibility but come with uncertainty.

The average home loan size in Australia is approximately AUD 500,000, varying by region and borrower circumstances.

Most Australians aim to pay off their mortgage by retirement age, around 65, but this varies widely based on individual financial strategies.

Typically, a 20% deposit is recommended to avoid Lenders Mortgage Insurance (LMI), but loans with deposits as low as 5% are available, subject to conditions.

How Will Bell Mortgage Broker Can Help

Finding the best variable home loan rate can significantly impact your financial well-being. Let Will Bell Mortgage Broker guide you through this process, ensuring you secure a loan that aligns perfectly with your needs and goals.
Picture of Will Bell

Will Bell

Will Bell has 15 years’ experience in the finance industry, the last 11 years he has owned and operated Will Bell Mortgage Broker. He specializes in residential home loans and over the years has carved out a trusted brand. This is proven by the reviews his customers have made regarding the service and the experience he has provided.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.


Services we offer:

  • First Home Buyer Loans
  • Property Investment Loans
  • Mortgage Consultation
  • Loan Prequalification
  • Debt Consolidation
  • Refinancing
first home buyers melbourne
buying a house checklist