Finty

Compare variable rate personal loans

Set your amount and term to see the repayment and total cost of 179 variable rate personal loans side by side, so you know what you'd pay before you apply.

A variable rate can go up or down during the loan. In return, most variable loans let you make extra repayments or pay the loan off early without a break fee.

Written byDavid Boyd

What will it cost you?

Enter how much you want to borrow and for how long, and we'll show your monthly repayment and total cost on every loan below, at each one's lowest published rate.

176 loans

Showing 20 of 176

Repayments use each loan's lowest published rate and include any monthly fee. The total adds the establishment fee. The rate you are offered depends on your circumstances. Comparison rates are for the lender's own example loan, usually $30,000 over 5 years.

WARNING: A comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Variable rate personal loans at a glance

Worked out from the 179 loans from 55 lenders we compare on this page.

Typical comparison rate

9.68%

Half the loans start between 7.78% and 11.78%.

Typical setup fee

$163

6 of 148 loans charge no setup fee.

No monthly fee

7 of 51

loans that state a monthly fee set it at $0.

Fixed or variable

14 fixed179 variable

Some loans offer both.

How starting comparison rates are spreadNumber of loans in each band. The most common is 7–9%.

The short version

  • A variable rate can go up or down during the loan, so your repayments can change.
  • In return, most variable loans let you repay extra or early without a fee.
  • Leave room in your budget in case rates rise.

Why choose a variable rate

A variable rate moves with the market, usually after changes to the Reserve Bank's cash rate, so your repayments can go up or down during the loan.

Variable loans usually let you make extra repayments and pay the loan off early without a break fee, which suits you if you expect to clear the debt ahead of schedule.

Comparing variable rate loans

Look at the comparison rate as well as the interest rate. The comparison rate adds the lender's standard fees to the interest rate for an example loan, so it shows the cost of two loans on the same footing.

Pros

  • Flexibility. Most let you make extra repayments and pay out the loan early without a fee, which cuts the interest you pay.
  • You benefit if rates fall. Your repayments can drop.
  • Often redraw. Some let you take back extra repayments if you need them.

Cons

  • Repayments can rise. If the lender lifts its rate, you pay more each month.
  • Harder to budget. You won't know the total cost up front.
  • The lender decides when to move the rate, not just in line with the Reserve Bank.

Alternatives

  • A fixed rate personal loan, if you'd rather know your repayments for the whole term.
  • A low rate or interest free credit card. For a smaller amount you can repay within a year or so, a card's interest free period can cost less. Pay it off before the period ends, as the rate afterwards is usually higher.

How to apply

Applying for a variable rate personal loan usually takes 15 minutes online. Most lenders give a decision within a day or two, and some within the hour.

  • Check your rate first. Many lenders show the rate you'd get with a soft check, which doesn't show as a credit enquiry, before you formally apply.
  • Have your details ready. Lenders ask for ID, payslips or tax returns, your spending, and the debts and credit limits you already have.
  • Apply to one lender at a time. Each formal application is recorded on your credit report, and several close together can make lenders more cautious.
  • Read the contract before you sign. Check the comparison rate, every fee, and what happens if you repay early or miss a repayment.

Questions people ask

What rate will I get?

Most lenders set your rate from your credit history, income and the loan itself, so the advertised rate is the lowest you could get, not the rate everyone gets. A rate quote with a soft check shows your own rate before you apply.

Can I pay it off early?

Usually, yes. Variable rate loans rarely charge for it. Fixed rate loans may charge an early repayment or break fee, so check the contract if you might pay it off sooner.

How much can I borrow?

It depends on the lender's limits and what you can afford. Lenders look at your income, your living costs and your other debts, and only lend what they think you can repay without hardship.