Variable rate home loans
Get our lowest online variable home loan rate, or a tailored variable rate with offset.
Why choose our variable rate home loans?
Flexible features
Freedom to split your loan, redraw anytime with no fees, and enjoy unlimited extra repayments, as well as make Interest Only repayments.
Save on interest with an offset
Every dollar in your offset account counts towards reducing the interest on your linked home loan.
Sweet variable rates
Your lender will call you about our lowest online variable home loan rate, or a tailored rate with offset.
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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Owner occupier - Our lowest online variable rate
When you apply onlineFlexi First Option Home Loan
5.24%p.a.Online Offer basic variable rate^5.25%p.a.Comparison rate*
Online Offer rate includes:
- Tick - Life-of-loan 2.09% p.a. discount on a Flexi First Option Home Loan on P&I
- Tick - 0.10% p.a. discount for LVR+ up to 70%.
Eligibility, T&Cs apply
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Investor - Our lowest online variable rate
When you apply onlineFlexi First Option Investment loan
5.39%p.a.Online Offer basic variable rate^5.40%p.a.Comparison rate*
Online Offer rate includes:
- Tick - Life-of-loan 2.49% p.a. discount on a Flexi First Option loan on P&I
- Tick - 0.10% p.a. discount for LVR+up to 70%.
Eligibility, T&Cs apply
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Variable loan with offset
Up to 10 optional offset accountsPackaged# Rocket Repay home loan
5.64%p.a.Owner Occupier variable rate6.02%p.a.Comparison rate*
Rate includes
- Tick - Package discount for the life of your package ($395 annual package fee applies#) on P&I
- Tick - 0.10% p.a. discount for LVR+ up to 70%.
Eligibility, T&Cs apply
How do I qualify for the Online Offer?
You must:
- Apply online and select a Flexi First Option Home Loan or Investment Loan
- Have an LVR 80% or less (LVR+ up to 70% includes a 0.10% p.a. rate discount)
- Excludes internal refinances within the Westpac Group.
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 refinance within the Westpac Group.
An extra loan to make sustainable upgrades to your home
You could make energy-efficient and climate-resilient upgrades to your home, with our Sustainable Upgrades home and investment loan on a cool 3.74% p.a. variable rate (4.13% p.a comparison rate***).
Frequently asked questions
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.
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.
Finally, we divide this up according to your preferred repayment frequency, whether that’s weekly, fortnightly or monthly. This figure is your repayment amount.
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.
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.
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, although you may need to pay other fees.
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.
Things you should know
Conditions, credit criteria, fees and charges apply. Residential lending is not available for Non-Australian Resident borrowers.
This information is general in nature and has been prepared without taking your personal objectives, circumstances and needs into account. You should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.
Taxation considerations contained in this article (on this page) are general in nature. They do not take into account your personal circumstances and they should not be interpreted or used as tax advice or a tax guide. You should seek independent tax advice to determine the appropriate tax consequences relevant to your circumstances before making any decision based on this information.
+LVR stands for the loan-to-value ratio. LVR is the amount of your loan compared to the Bank's valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and won't change during the life of the loan as the LVR changes.
#Premier Advantage Package: Conditions of Use and $395 annual package fee applies. You must either hold or be approved for a Westpac Choice transaction account in order to qualify and continue to receive the benefits of the Premier Advantage Package. Applicants must have a Westpac Choice transaction account linked to the home loan at the time of settlement and must keep this account open for 60 days after settlement. Before deciding to acquire a Westpac Choice account, read the terms and conditions, and consider whether the product is right for you. Tax consequences may arise from this promotion for investors and customers should seek independent advice on any taxation matters.
Premier Advantage Package Conditions of Use (PDF 293KB)
^Flexi First Option Home Loans and Investment Loans: Life-of-loan discount is available for new Owner Occupier and Investment Property loans. This includes both Principal & Interest and Interest Only repayments. Offer does not apply to product switches. Interest rates are subject to change. Offer may be varied or withdrawn at any time.
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 refinance within the Westpac Group.
*Comparison rate: The comparison rate is based on a loan of $150,000 over the term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
**This claim is based on The Forrester Digital Experience Review™ of 4 Australian mobile banking apps in Q3 2025. Future findings are subject to change. Forrester does not endorse any company or brand, nor their products or services, nor advise anyone to select them based on this review. If you want to learn more, go to the Forrester website.
***Sustainable Upgrades home loan and Sustainable Upgrades investment loan comparison rate: The comparison rate is based on a loan of $30,000 over the term of 5 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.