Variable rate home loans
Get our lowest online variable home loan rate, or a tailored variable rate with offset.
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Flexible features
Freedom to split your loan, redraw anytime with no fees, and enjoy unlimited extra repayments, as well as make Interest Only repayments.
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Save on interest with an offset
Every dollar in your offset account counts towards reducing the interest on your linked home loan.
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Sweet variable rates
Your lender will call you about our lowest online variable home loan rate, or a tailored rate with offset.
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Australia's Best Banking App
Accept and upload documents all in one place in Australia's Best Banking App[#], three years running.
Featured variable rate home loans
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How do I qualify for the Online Offer?
You must:
- Apply online, and select a Flexi First Option Investment loan with P&I and IO repayments.
- Have an LVR 80% or less (LVR[#] up to 70% includes a 0.10% p.a. rate discount)
- Excludes company and trust borrowers, bridging loans, construction loans and internal refinance within the Westpac Group.
Online offer terms and conditions
Online Offer. Only available for online applications for new Flexi First Option Owner Occupier and Investment loans with Principal & Interest and Interest Only repayments. Rate includes a special life-of-loan discount with a loan-to-value ratio up to 80%. Excludes company and trust borrowers, bridging loans, construction loans and internal refinances within the Westpac Group.
Frequently asked questions
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What is a variable rate home loan?
A variable rate home loan is a home loan with an interest rate that may change over time. If you choose a variable rate home loan, you may be able to take advantage of any interest rate decreases over your loan’s term. If your rate decreases, it means you pay less interest on the home loan balance.
On the other hand, you may also find that your rate increases, which would involve paying a higher interest rate and regular repayment amount than at the start of your loan term.
How is variable interest calculated?
We calculate your interest in two steps.
First, we multiply the balance on your loan by your interest rate and divide by 365 days in a year. This shows your daily interest charges.
We then add together your daily interest charges for every day in each month, which produces the monthly interest charge shown on your statement.
If your loan balance was $500,000 with an interest rate of 4.93% p.a. and monthly repayments, the calculation might look like this:
500,000 x 0.0493 / 365 = $67.53 interest per day
$67.53 x 30 days in September = $2,026 interest for September
You can use our Mortgage Repayment Calculator to estimate repayments and interest charges over the life of a loan. You can also use the calculator to check the effect that extra repayments could have on your home loan.
What is the difference between fixed and variable interest rates?
Fixed interest rates differ from variable interest rates in that they do not change over the fixed interest rate term of the loan (1-5 years). Fixed rates allow you to lock in some certainty about your rate and how much your repayments will be over the fixed rate term. They also mean you don’t take advantage of any potential decreases in your home loan interest rate, which is one potential benefit of a variable rate loan.
Can I switch from fixed to variable?
In most cases, if you have a fixed rate home loan, you will be able to switch part or all your balance to a new variable rate loan. Note that this may incur break costs if you are making the change before the end of the fixed rate term.
It is also possible to switch all or part of a variable home loan balance to a fixed rate if you want to. Break costs don’t apply when switching from variable to fixed.
What is a split home loan?
A split home loan is when you separate your home loan balance into two different accounts, one with a variable interest rate and one with a fixed interest rate.
Splitting your home loan balance with a fixed and variable interest rate allows you to get the best of both worlds. With the fixed portion of your home loan, you can lock in your interest rate and be certain that your repayment amounts won’t change for the duration of the fixed rate term.
The variable rate portion of your loan lets you take advantage of any interest rate decreases and get ahead with no limit on the amount of extra repayments you can make. Learn how it works.
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Apply in around 10-20 mins to buy a home or refinance to Westpac.
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Pick a time and place that suits you to talk to a home loan specialist.
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Things you should know