Basic Variable Rate Home Loan Comparison
What is a Basic Variable Loan?
Before you have even decided on the type of home loan you need or how much you want to borrow you will have realised that there are almost infinite choices when it comes to how you are able to use your loan and the features you can add. So to help you avoid becoming overwhelmed by all of the choice and variety just know that there is a simpler way if you find you need it. Basic variable rates have a few things in common across all Australian lenders, such as:
- An interest rate which fluctuates with the official cash rate.
- In times of rising interest rates the interest on your home loan may also increase.
- When official rates are being cut you can also enjoy reduced interest charges on your home loan.
- A basic variable rate will be the lowest on the market.
- A basic variable rate loan has few other features which is why it is so affordable.
- Competition between basic variable rate loans means that great deals on affordable yet to feature packed loans are possible.
Featured Variable Rate Home Loan
Apply for an AMP Essential Home Loan and get a low variable interest rate, plus no valuation and no additional repayment fee.
- Interest Rate of 6.35%
- Comparison Rate of 6.37%
- Application Fee of $350
- Maximum LVR With LMI: 90%
- Minimum Borrowing: $40,000
- Maximum Borrowing: $1,000,000
Featured Basic Variable Rate Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 AMP Essential Home Loan |
A low rate home loan from AMP with a $0 application fee. | 6.35% | 6.37% | $350 / $ 0 | 90% | $40,000 / $1,000,000 |
 
|
 Fox Symes Standard Variable Home Loan |
A low variable rate home loan with no ongoing or upfront fees. | 6.20% | 6.22% | / $0 | 95% | $0 / $2,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan |
No application fee with a low interest rate. | 6.22% | 6.45% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
 Loans.com.au – Dream Catcher |
A home loan offer with a $0 application fee and a low interest rate. | 6.13% | 6.47% | $0 / $375 | 80% | $50,000 / $750,000 |
|
 PMG Standard Variable Home Loan |
A flexible home loan offer with one of the lowest available home loan interest rates in the market. | 6.16% | 6.16% | $0 / $0 | 90% | $0 / $2,000,000 |
|
 HomeStar Advantage Premium >$500,000 |
No application or ongoing fees and a bonus discounted rate. | 6.48% | 6.48% | $0 / $0 | 95% | $500,000 / $2,000,000 |
|
 Community First True Basic Home Loan |
One of the most competitive basic loans on the current market. | 6.84% | 6.92% | $500 / $0 | 95% | $100,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan |
A low variable rate from Illawarra Home Loans, beaten down even further by 0.05% p.a. after 5 years. | 6.18% | 6.46% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 St. George Standard Variable Loan |
Enjoy Flexible Options and Low Annual Fees | 7.80% | 7.96% | $600 / $10 | 95% | $10,000 / $10,000,000 |
|
 Resi Home Loans – Flexi Fix |
A low interest rate home loan with a low application and ongoing fee. | 5.75% | 6.69% | $0 / $0 | 95% | $50,000 / $2,000,000 |
|
Fox Symes Fixed Rate Home Loan – 3 Year Fixed Rate |
A low interest rate home loan with no ongoing fee and free online redraws. | 6.20% | 6.40% | $Varies / $0 | 95% | $0 / $2,000,000 |
|
 NAB National Choice Package ($250,000 and above) |
Enjoy a discount of up to 0.70% p.a. off the standard variable home loan interest rate. | 6.52% | 6.88% | $0 / $395 | 95% | $250,000 / $10,000,000 |
|
Where basic variable rates are typically advertised as being a simplified loan product with fewer features, allowing the lenders to offer very low interest rates, variable-rate home loans are one of the most popular options in the Australian loan market and so to remain competitive many lenders have started to value add on to their basic variable rate loans. This means it can be possible for you to find a standard variable loan with all of the features you need and the lowest rates in the market as most basic variable rate loans will allow you to make extra repayments for example and this is one of the most effective ways you can save money on your home loan because every extra dollar you reduce your home loan reduces the term of your loan and in turn the amount of interest you will be paying.
A basic variable rate loan may be perfect for you if:
- You are a first-time buyer. Comparing and applying for your first time is only half the battle because once your loan is approved you have to manage that debt for the next 25 to 30 years. In most cases home loan debt is unlike any other financial product you have had in the past and it can take some getting used to so you may be able to benefit from a simplified loan product which allows you to make your repayments easily, saves you money by charging you the lowest interest rate possible, while also rewarding you with interest savings when you have a little spare cash at the end of the month.
- You want to stay settled. Most people are continually on the move whether in their work, home or personal life and you may not be surprised to learn that the average life of a home loan now is 20 months because within that time the mortgage holder has decided to move on to something bigger and better. However if you are looking to buy a home and settle in to building a life in your new home then you can benefit from a simple home loan which allows you to make your monthly repayments and not give your home loan another thought because you can always be secure in the knowledge that you are getting the lowest possible interest rate because there are no extra frills you have to pay for which you’re not using.
Finding the right home loan is an important task and should not be taken lightly. However once you have chosen a loan and been approved, the workload should lessen because your home loan should work in sync with your life and allow you to manage your loan your way.
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