Apply if you

✓ are at least 18 years of age,

✓ are a citizen or permanent resident of Australia,

✓ are currently in paid employment,

✓ have not been bankrupt.


What's next? 

As your application progresses, you'll be kept up to date with email notifications and calls from your dedicated home loan specialist.


Why Us?

We're an award-winning customer-owned bank, putting people and community before profit.

"Excellent customer service and very smooth transfer of mortgage from other bank to Qudos."

Excellent customer service and very easy to talk to and ask questions. Smooth process transferring mortgage over and fixing rate. Excellent response time - very quick and easy to get a hold of an actual person. Highly recommend.


Bec, NSW
from ProductReview.com.au

Variable Rate Home Loan FAQs 

Got questions? We've got answers. View all our Home Loan FAQs here.

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: 

  • Potential interest rate savings: One of the primary advantages of a variable rate home loanis the potential for savings if interest rates decrease. When the interest rate drops, your loan repayments may decrease accordingly, which could allow you to pay off your mortgage faster or provide more disposable income. 
  • Flexibility: Variable rate home loans offer greater flexibility compared to fixed-rate loans. You may be able to make extra repayments, increase your regular repayments, or even pay off your loan earlier without incurring significant penalties. This flexibility may help you manage your finances better and potentially save on interest over the life of the loan. 
  • Offset accounts and features: Many variable rate home loans come with additional features such as offset accounts. You’ll usually incur a separate fee in having one. An offset account is a transaction account linked to your home loan, and the balance in the account is offset against your outstanding loan balance. This may reduce the amount of interest you pay on your loan. 
  • Access to additional features: Variable rate home loans often provide access to features like redraw facilities, which allow you to withdraw extra repayments you've made. This can be useful if you need to access those funds for other purposes, such as home renovations or emergencies. Having a redraw facility may be subject to a fee. 
  • Potential to pay off earlier: With a variable rate home loan, you typically have the option to make additional repayments or pay off your loan early without facing substantial penalties. This could help you save on interest and become mortgage-free sooner. Find out more about how this feature could improve your finances with our home loan extra repayment calculator. 
  • Benefit from interest rate drops: If your lender reduces interest rates for your loan product, you have the potential to benefit from lower repayments. This means that variable interest rates could potentially free up more cash for your other financial goals or reduce financial strain during challenging times. 

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: 

  • Financial Stability: Assess your financial stability and ability to manage potential fluctuations in loan repayments. If you have a stable income and are confident in your ability to handle potential interest rate increases, a variable rate home loan may be suitable. However, if you have a tight budget or prefer more predictable repayments, a fixed-rate home loan might be a better option. Refinancing your home loan to a variable rate may offer benefits such as potential interest rate savings or access to additional features. 
  • Risk Tolerance: Consider your tolerance for risk. Variable rate home loans can change over time, which means your repayments may increase if interest rates rise. If you prefer a level of certainty and want to protect against potential rate hikes, a fixed-rate loan might be a better fit. 
  • Market Conditions: Stay informed about current economic trends and interest rate forecasts. If interest rates are expected to remain relatively stable or are forecasted to decrease, a variable rate home loan may be more appealing. However, if interest rates are predicted to rise, you may want to consider a fixed-rate loan to secure a consistent repayment amount. 
  • Financial Goals: Consider your long-term financial goals. If you plan to make extra repayments, pay off your loan sooner, or take advantage of offset accounts or other features, a variable rate home loan can provide the flexibility to achieve these goals. On the other hand, if you prefer a set repayment plan without the need for additional features, a fixed-rate loan may be more suitable. 

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.  

We will accept applications by telephone, online or in person at one of our branches. Our Home Loan Application Checklist and Guide can help you through every step of the process. 

For more information view our Home Loan Application Process Page. 

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. 

6.99 % p.a. Interest rate 7.03 % p.a. Comparison rate

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.

How to apply?

You might also be interested in

Helpful Tips and Guides


  • 1 Excludes existing loans, switching and variations. These offers can be withdrawn by Qudos Bank at any time. Rates displayed above are available for new borrowings of $150,000 and over only. Minimum deposit or equity of 5% is required. For interest only loans, the rate shown is the rate that applies during the interest only period of your loan. At the end of the interest only period, the interest rate will revert to the variable interest rate applicable to a new principal and interest Standard Variable Home Loan with a deposit or equity of 20% or more, for the relevant purpose (ie. owner-occupied or investment). Interest only available for 1 to 5 years and are subject to approval.
  • 2 WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Our comparison rate assumes a loan of $150,000 for 25 years. For interest only loans, the comparison rate is based on a 5-year interest only period, reverting to the interest rate applicable to a principal and interest loan with a deposit or equity of 20% or more for the relevant purpose (ie. owner-occupied or investment).

3 An establishment fee of $600 applies to this loan.

Approved applicants only. Normal lending criteria, terms and conditions and fees and charges apply.

Lenders mortgage insurance is required for home loans over 80% LVR and is subject to approval.

For interest only loans, only monthly repayment option available. During an interest only period, your interest only payments will not reduce your loan balance. This may mean you pay more interest over the life of the loan.

You should read and consider the relevant terms and conditions (available on request) and our Financial Services Guide before deciding whether to obtain any of our financial products or services. Target Market Determination available here.

Canstar Outstanding Value – Home Lender – 2024 awarded for Outstanding Value across all P&I owner occupier profiles