Variable Rate

An interest rate that moves up and down based on lender pricing decisions and (indirectly) the RBA cash rate.

A variable-rate home loan has an interest rate that the lender can adjust at any time. Movements are typically (but not always) aligned with RBA cash rate changes. Variable loans usually offer more flexibility — full offset, redraw and unlimited extra repayments — which is why they're often paired with offset accounts to accelerate equity build.