As the name suggests, the interest rate can vary during the term of the loan depending on the market at the time. Variable rates are based on official Reserve Bank interest rates and generally won't change unless there is an official change. Variable Loans include Basic, Standard or Revolving Line of Credit products and are generally the most flexible. Variable loans generally allow you to offset your mortgage to make extra repayments and redraw as you need. They also can allow you to pay your loan out early. The term is generally about 30 years.

- When interest rates fall, repayments fall
- You can make additional payments without penalty
- Often with more features and they can be Flexible
- When interest rates rise, so do your repayments