Variable Rate Personal Loans

If you're searching for a variable rate home loan, you're not alone. They're Australia's most popular type of mortgage and account for over 75% of all home loans. The beauty of variable rate loans is that they offer so much flexibility to tailor a mortgage to suit individual needs. 

Savvy can help you compare the best home loan interest rates so you can choose a variable loan that fits in neatly with your lifestyle.  Start the comparison process today to help you get your home loan application underway sooner.

Compare variable rate loans with Savvy to take full advantage of these benefits

Competitive interest rates

You can compare the very best loan deals around to help maximise your chances of finding a great low variable interest rate on your home loan

Take advantage of interest rate decreases

You can take advantage of drops in your lender’s interest rate to help you potentially save thousands on the total interest you pay on your mortgage.

Be spoilt for choice with so many loans on offer

The number of variable rate home loans in the market has ballooned in recent years, with a vast range of loans to choose from with many lenders competing for your business.

Choose your loan term and repayment frequency

There’s a variety of ways to reduce the interest you pay on your loan, including offset accounts and redraw options which also add greater flexibility to your loan.

Access additional features

Quick cash loans can be tailor-made to your requirements regarding how much you need and the time you need to pay it back

No early exit fees

The right loan for you today may not be the perfect one for you in five years’ time, but with no early exit fees on your variable rate loan, you have the choice to refinance with no nasty surprises.

Types of personal loans

Unsecured personal loans

With an unsecured personal loan, you can potentially borrow as much as $75,000 without the need to attach any valuable assets, such as your car, as security. These loans are the most widely available and often the quickest, with same-day approval possible.

Secured personal loans

Secured personal loans, on the other hand, make use of collateral. This lowers your risk profile in the eyes of a lender, potentially lowering your interest rate and expanding your borrowing power beyond what you may be able to get through an unsecured loan.

Fixed rate personal loans

Fixed interest rates are locked at the beginning of your loan and remain constant throughout your repayments. This acts as a valuable protection against interest rate increases, as your loan will be unaffected, but you’ll miss out on potential drops as well.

Variable rate personal loans

Variable interest rates remain open to fluctuation during your term. This means you can benefit from decreasing rates and save on your loan if the market heads in that direction, although you’ll also pay more if rates start rising.

Debt consolidation loans

If you’re paying off multiple debts at the moment, particularly those with high interest (such as credit card debts), consolidating them into one payment can make them more convenient to manage and save you money.

Joint personal loans

Many lenders will give you the option to apply jointly with a partner. Doing so can boost your chances of approval, given that your loan will be serviced by two incomes instead of one. It may also be convenient for covering shared expenses.

Self-employed personal loans

Personal loans aren’t limited to PAYG employees. If you’re running your own business, you can still be approved by submitting tax returns and other business financials instead of payslips and utilise your funds however you wish.

Top tips for securing the best variable rate home loan

Save as large a deposit as you can

This can save you money in several ways. The larger deposit you save up, the less you need to borrow, so you’ll save by having a smaller mortgage to start with.  Lenders can also offer cheaper interest rates to people with larger deposits, and if you can offer more than 20% of the value of your house as a deposit, you’ll also avoid paying Lenders Mortgage Insurance (LMI), which could save you thousands of dollars more.

Do your research with Savvy

Getting stuck with a home loan that doesn’t meet your needs can be an expensive mistake.  It’s important to do your research before deciding which loan and lender are right for you, but you can leave much of the comparison legwork to us.  Savvy will help you shortlist the best variable rate home loan deals currently available in Australia tailored to your needs.  Compare across all the factors which matter most to you.

Give yourself a flexible budget

Because repayments on variable rate loans will change over the coming months and years, it’s important to give yourself some wiggle room when you’re planning your home loan budget. Don’t leave yourself so tight on cash that you’ll be unable to make your loan repayments if interest rates suddenly go the wrong way and you find yourself with larger monthly repayments. A safe rule of thumb is to only spend 30% of your income on your variable rate mortgage repayments.

Pay off your loan as soon as you can

The longer you have a loan, the more it will cost you in interest.  Since your variable rate home loan may come with the option to make extra repayments, take advantage of this feature and opt for larger instalments over a shorter loan period (provided you can afford to).  If you do have extra cash at the end of your pay cycle, consider putting this on your loan as an additional repayment too, which can save you thousands over the life of your loan.

Keep an eye out for better deals

It’s important to remember that if the Reserve Bank reduces interest rates, all lenders decide if they will pass this reduction onto their customers. Some may only pass on a portion of the rate cut, while others will pass on 100% of the decrease. Since you have the flexibility to change lenders, it pays to keep an eye out for the best variable rate deals possible, so don’t be afraid to ask your lender to pass on rate cuts and be prepared to swap lenders if they don’t.

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