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✓ are at least 18 years of age,
✓ are a citizen or permanent resident of Australia,
✓ are currently in paid employment,
✓ have not been bankrupt.
As your application progresses, you'll be kept up to date with email notifications and calls from your dedicated home loan specialist.
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A variable rate home loan entails that the interest (interest rate) you pay on your home loan can fluctuate over time. Unlike a fixed-rate home loan, where the interest rate remains the same for a specific period of your loan, variable rate home loans in Australia are subject to changes based on market conditions and factors such as the Reserve Bank of Australia's (RBA) cash rate, lender policies, and economic influences.
Variable interest rates can increase or decrease during the term of the loan, which directly affects the amount of interest you pay on your mortgage. When the interest rate rises, your loan repayments may increase, while a decrease in the interest rate may result in lower repayments. This variability is what sets variable rate home loans apart from fixed-rate home loans, which provide stability in repayments for a set period but may not benefit from interest rate reductions.
A variable rate home loan offers several advantages that can be beneficial to borrowers, including:
In any case, it’s important to compare various home loan options to ensure that you find the best variable interest rate for your individual circumstances and financial needs.
For those considering a variable rate home loan for the first home, we recommend reading our comprehensive guide to buying your first home.
Determining if a variable rate home loan is right for you requires careful consideration of your financial circumstances, goals, and risk tolerance. Here are some factors to consider when deciding if home loan variable rates are better suited to your needs:
Read our ‘Should I fix my home loan’ blog to learn more about whether a fixed rate or variable rate home loan aligns better with your financial goals
Yes, lenders generally allow borrowers to switch from a variable rate home loan to a fixed rate. However, it's important to note that specific terms, conditions, and fees may apply.
For Qudos Bank customers, contact us directly to discuss the details and requirements of switching your loan from a variable rate to a fixed rate.
Yes, typically, variable rate home loans allow you to make extra repayments. Making extra repayments may be an effective strategy to reduce the outstanding balance of your loan faster and potentially save on interest charges over the loan term.
However, it's important to review the specific terms and conditions of your variable rate home loan, as some loans may have limits on the amount or frequency of extra repayments or may charge fees for certain types of additional payments.
Once you've submitted your application and supporting information to us conditional approval is usually obtained within 48 hours, subject to satisfactory credit checks and verification of financial and property information. Our Lending Specialists can provide more information about approving your loan.
Yes, it’s generally possible to split your home loan between variable and fixed rate products. Loan splitting allows you to divide your loan amount into different portions, each with its own interest rate and repayment structure. By splitting your loan, you can have part of it on a variable rate and another part on a fixed rate, giving you the benefits of both types of loans.
It's important to note that specific terms and conditions, as well as any associated fees, may apply when splitting your loan between variable and fixed rate products. Contact Qudos Bank directly to discuss the options available to you and understand the details of loan splitting for your specific circumstances.
A redraw facility allows you to take back the extra payments you have made on your loan account. For example, your minimum monthly loan repayments are $3,000. If you pay $3,200 each month for a period of 6 months, you'll have paid an additional $1,200 on top of your minimum repayments. The redraw facility allows you to access that extra $1,200 if required. A fee for a redraw facility may apply.
T&Cs, fees, charges and lending criteria apply. Rates displayed above are available for new borrowings of $150,000 and over only, principal and interest, deposits 20% or more.