variable rate loans

With a variable rate loan, your interest rate goes up and down, based on the ‘official’ interest rate set by the Reserve Bank.

Variable rate home loans typically offer a significantly lower interest rate than fixed rate home loans. Plus, if the Reserve Bank lowers official rates, your rate will usually drop with it. So you could pay less, over time, than you expected.

What’s more, variable rate ausia home loans are generally more flexible. With one of our variable rate home loans, you get an offset account and a free redraw facility. By depositing any savings straight into the offset account, you reduce (or ‘offset’) your principal. And because your interest is calculated on your principal, you pay less interest. But should you need those savings in the future, they’re there for you to withdraw.