Fixed or Variable Mortgage Loans - Which is right for me?
Find out how what fixed and variable home loans are, how they work, and the advantages and risks of each. Learn more here.
Variable Home Loans
Interest rate
5.99
%#
p.a.
Comparison rate
6.00
%^
p.a.
~Great Rate Home Loan discount variable rate, owner occupied, principal and interest
After a variable rate?
Competitive variable rates, plus discounted rates for eligible customers.
Variable home loan interest rates we offer
Great Rate Home Loan - discount variable rate
| Great Rate Home Loan - discount variable rate | Interest Rate # | Comparison Rate ^ |
|---|---|---|
| Variable | 5.99% p.a. | 6.00% p.a. |
Great Rate Home Loan - variable rate
| Great Rate Home Loan - variable rate | Interest Rate # | Comparison Rate ^ |
|---|---|---|
| Variable | 7.86% p.a. | 7.87% p.a. |
Ultimate Home Loan - discount variable rate
| Ultimate Home Loan - discount variable rate | Interest Rate # | Comparison Rate ^ |
|---|---|---|
| Variable | 6.14% p.a. | 6.51% p.a. |
Ultimate Home Loan - variable rate
| Ultimate Home Loan - variable rate | Interest Rate # | Comparison Rate ^ |
|---|---|---|
| Variable | 7.66% p.a. | 8.01% p.a. |
Great Rate Investment Home Loan - discount variable rate
| Great Rate Investment Home Loan - discount variable rate | Interest Rate # | Comparison Rate ^ |
|---|---|---|
| Variable | 6.24% p.a. | 6.25% p.a. |
Great Rate Investment Home Loan - variable rate
| Great Rate Investment Home Loan - variable rate | Interest Rate # | Comparison Rate ^ |
|---|---|---|
| Variable | 8.24% p.a. | 8.25% p.a. |
Ultimate Investment Home Loan - discount variable rate
| Ultimate Investment Home Loan - discount variable rate | Interest Rate # | Comparison Rate ^ |
|---|---|---|
| Variable | 6.34% p.a. | 6.70% p.a. |
Ultimate Investment Home Loan - variable rate
| Ultimate Investment Home Loan - variable rate | Interest Rate # | Comparison Rate ^ |
|---|---|---|
| Variable | 8.04% p.a. | 8.38% p.a. |
Variable Rate home loan explained
A variable rate home loan is a loan that is set up so that your interest rate (and therefore your repayment amount) can change at any time over the term of the loan, depending on decisions made by your lender.
Your lender's decision to adjust interest rates may be influenced by the RBA Cash Rate, more general market forces, and rate decisions made by competitors.
In general terms, the main advantages of a variable rate home loan are seen to be greater flexibility, more features available, and the ever-present chance of your interest rate, and the cost of your home loan decreasing.
Variable or Fixed Home Loans
- Variable rate home loans do put you at the mercy of changes to interest rates and repayments, but you will generally find that you'll be able to make extra repayments without penalty, and are more likely to find a variable loan that gives you access to redraw and offset facilities.
- Fixed rate home loans allow you to enjoy peace of mind knowing your rate and repayments won't change for the fixed term. However, they can have less features than variable rate loans, and may not be as flexible when it comes to making extra repayments and getting ahead.
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Your variable rate loan questions answered
Generally speaking, if lenders are of the expectation that the RBA Cash Rate is going to rise, their fixed rates will be higher than their variable rates.
Conversely, if lenders expect the Cash Rate to fall, their fixed rates will be lower than their variable rate.
Although some may believe that variable rate changes only occur in line with movements in the RBA Cash Rate, there is no set pattern to the rise and fall of variable home loan interest rates.
Lenders are able to make their own decisions on whether to raise or lower their variable rates at any time.
Often, a variable rate home loan is seen to have more flexibility, and one of the reasons for this may be to do with the fact that in most cases, penalties do not apply for making extra repayments and paying off your variable rate mortgage earlier than expected.
Before you do attempt to get ahead and make extra repayments, though, be sure to examine your loan conditions, and make sure you won’t be penalised for extra repayments made.
This depends on a number of factors, such what’s happening in the markets and what the Reserve Bank is doing with its cash rate.
There may be periods of months or even years during which your variable rate won’t change much, or you could see multiple variable interest rate changes in the same month.
As the name suggests – it’s variable – it varies!
No, unfortunately, by the very nature of a variable rate loan, you’re unable to lock in a rate at a certain point in time, for a certain period of time.
Having a variable rate comes with pros and cons, and one of the potential cons is that at times, you may be exposed to rising interest rates.
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*Conditions, fees and charges apply to all loans. Subject to meeting Greater Bank's lending criteria.
Greater Bank, part of Newcastle Greater Mutual Group Ltd ACN 087 651 992, Australian Financial Services Licence/Australian credit licence 238273
++$2,000 cashback for loans ≥$250,000 or $2,500 cashback for loans ≥$500,000. Only one (1) Cashback Payment per eligible loan, and for first eligible loan only. Not available in conjunction with any other promotional payment. Offer may be varied or withdrawn at any time. See the full Cashback Offer Terms and Conditions. Terms, conditions, fees, charges and credit criteria apply.
~At the end of the fixed rate period customers can chose to re-fix their loan for another fixed rate period or let the loan revert to the applicable variable interest rate based on the loan and repayment type.
^Comparison rate is based on $150,000 over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
#Discounted rates include a discount on Home Loans of $150,000 or over and for owner occupied Home Loans with an LVR 80% or below and for investment Home Loan with an LVR 80% or below and apply to new borrowings only. Discounted rate not available for Line of Credit facilities.
+Additional costs may apply if your loan has a fixed rate.
All new interest-only home loans, attract a 0.10% p.a. margin above the applicable Principal and Interest base rate. All new Line of Credit home loans, attract a 0.10% p.a. margin above the applicable Line of Credit base rate. The all-up interest rate which includes any margins, will be set out in your credit contract. View our Terms and Conditions.
FASTRefi® is a registered trademark of First American Title Insurance Company of Australia Pty Limited ABN 64 075 279 908.
Rate City Gold Award 2024, see http://ratecity.com.au/home-loans/awards for more information