Family considering getting variable interest rate home loan
Family considering getting variable interest rate home loan

Our variable rate home loan option

Manage your money when real life happens. Plus, benefit from a 100% interest offset sub-account.

  It won’t impact your credit score


Let's keep it flexible

Our variable rate home loan options give you the flexibility to manage your money how and when you want. You’ll get access to our online loan portal, the freedom to make additional repayments along with the option for a 100% interest offset sub-account and VISA debit card+ access (monthly fees apply).

Our variable home loan interest rates

Variable rate home loan
Home loan variable interest rates starting from
For up to 55% LVR*
Comparison rate^

For new owner occupier variable rate home loans, making principal and interest repayments.
Up to 55% LVR. View our full interest rate range.

As with most lenders, our interest rates vary depending on your loan-to-value ratio, or LVR. Essentially, this is the size of your loan in relation to the property's value. Find out more about LVR. Interest rate ranges are based off Principal and Interest repayments.


Get to know our variable rate home loan

Offset sub-account

Offset sub-account

Take control of your finances with a 100% offset sub-account and linked Visa debit card+ (monthly fee applies)
Make extra repayments

Make extra repayments

Make unlimited extra repayments, free of charge, to get ahead on your loan.
Free online redraw

Free online redraw

Get easy access to your additional funds when you need them, thanks to our free online redraw. If you redraw over the phone, a fee will apply.
Flexible repayment options

Flexible repayment options

Variable interest rates can offer you the flexibility to manage your repayments as circumstances change.


Your Loan, Your Rate

Discover our flexible approach to home loans. We look at a range of factors to provide eligible borrowers with an interest rate estimate. Find out where you stand today.


Why Pepper Money?

We're fast: Credit decision within 2 business days
We're flexible: We'll look to give you options before saying 'no'
We're accessible: Talk through your situation with us


couple securing their online accounts to protect their identity
  • 90 day loan approval
  • We look beyond just your credit score
  • Get a quick response within 2 business days
  • Borrow up to 95% of the property value
  • Cash out for personal or business use
  • Additional income sources considered

What’s a flexible credit assessment?

We don’t just look at the black and white boxes on your home loan application. We make the effort to get to know you – the person behind the application. We ask the questions that matter and look to uncover the meaning behind any blips on your credit report, which allows us to make an informed decision and an interest rate based on your ability to repay a loan with us. Interest rates are determined using a range of factors (including your property goals, income and financial details).

It’s our flexible approach that helps more Aussies achieve their dreams of buying their new home.

< 55% LVR

Variable rate: 6.84% - 10.24% p.a.

Comparison rate^: 7.02% - 10.37% p.a.

55 - 65% LVR

Variable rate: 6.94% - 10.24% p.a.

Comparison rate^: 7.12% - 10.37% p.a.

65-70% LVR

Variable rate: 7.04% - 10.24% p.a.

Comparison rate^: 7.22% - 10.37% p.a.

70-75% LVR

Variable rate: 7.14% - 10.44% p.a.

Comparison rate^: 7.32% - 10.57% p.a.

75-80% LVR

Variable rate: 7.44% - 10.24% p.a.

Comparison rate^: 7.62% - 10.37% p.a.

80-85% LVR

Variable rate: 7.64% - 10.44% p.a.

Comparison rate^: 7.82% - 10.57% p.a.

85-90% LVR

Variable rate: 8.04% - 10.84% p.a.

Comparison rate^: 8.22% - 10.98% p.a.

90-95% LVR

Variable rate: 8.24% - 11.84% p.a.  

Comparison rate^: 8.42% - 11.99% p.a.

< 55% LVR

Variable rate: 7.14% - 10.59% p.a.

Comparison rate^: 7.32% - 10.72% p.a.

55-65% LVR

Variable rate: 7.24% - 10.59% p.a.

Comparison rate^: 7.42% - 10.72% p.a.

65-70% LVR

Variable rate: 7.34% - 10.59% p.a.

Comparison rate^: 7.52% - 10.72% p.a.

70-75% LVR

Variable rate: 7.44% - 10.79% p.a.

Comparison rate^: 7.62% - 10.93% p.a.

75-80% LVR

Variable rate: 7.74% - 10.59% p.a.

Comparison rate^: 7.92% - 10.72% p.a.

80-85% LVR

Variable rate: 7.94% - 10.79% p.a. 

Comparison rate^: 8.12% - 10.93% p.a.

85-90% LVR

Variable rate: 8.34% - 11.19% p.a.

Comparison rate^: 8.52% - 11.33% p.a.

90-95% LVR

Variable rate: 8.54% - 12.19% p.a. 

Comparison rate^: 8.72% - 12.34% p.a.

All applications are subject to credit assessment, loan eligibility criteria and lending limits. Terms and conditions, fees and charges apply. The actual interest rate will depend on the borrower’s circumstances and the information verified during the loan application assessment. 

Our variable rate loan details

Loan purpose
Purchase or refinance an owner-occupied or investment property. Debt consolidation, cash out and payment of tax debts considered.
Maximum LVR
Borrow up to 95% of the property value of owner-occupied property and up to 90% for investment property - subject to  eligibility criteria.
Loan amounts
From $50,000 to $2,500,000 (up to 65% LVR) - subject to  eligibility criteria.
Loan terms
10 - 40 years - subject to eligibility criteria
Repayment options
  • Principal and Interest, or
  • Interest only (up to 5 years)

Additional terms and conditions apply to Interest Only loans

Repayment frequency
  • Weekly, fortnightly or monthly for Principal and Interest loans
  • Monthly for interest-only loans


Extra repayments
Unlimited extra payments are permitted, free of charge

Redraw funds using online for free, using my.peppermoney

A fee applies for manual redraw

Loan splits
Split loan options are available
Offset Account
Yes, a 100% offset sub-account is available with Visa debit card+ access.  
Variable rate home loan

Not sure if a variable rate home loan is right for you?

Lock in your repayments with the security of our fixed rate home loan option. Choose from 2,3,5,7 and 10 year terms. Plus, there's no break fees.

What other home buyers are asking

Wondering if a variable interest rate is right for you? Here are some popular questions from other home buyers.

This is a calculation based on your total income, expenses, current credit exposure and your credit history. You can estimate your borrowing capacity in under 5 minutes using our home loan calculator - it’s quick, easy and won’t impact your credit score.

Different lenders charge different upfront and ongoing monthly fees, which should be factored in when saving your deposit. Some of these can be added to your loan balance, while others will need to be paid upfront – fees include establishments or application fees, and risk or mortgage insurance fees. Other smaller fees will be added to your balance each month.

You can view a summary of our home loan fees.

You’ll also need to pay solicitor fees along with local and state government taxes and levies. These can’t be added to your house loan balance and are usually paid upon settlement.

A few things in life are certain – and one of them is taxes. While stamp duty varies in each state or territory, it generally needs to be paid upfront and can’t be added to your loan balance. 

However, there are different schemes and grants in each state to support first home buyers – so it’s worthwhile checking if you qualify for any support: First Home Owner Grant

To get an estimate of how much stamp duty you might need to pay in each state in Australia, try our Stamp Duty Calculator.

The interest rates for home loans tend to vary for each individual, depending on a range of factors: 

  • The amount you need to borrow against the property value; known as the Loan-to-Value Ratio (LVR) 
  • The size of your deposit  
  • Your income 
  • Credit history 
  • Any assets you own 
  • Any liabilities or credit obligations
  • Chosen repayment type – paying off interest-only, or principal and interest 
  • The purpose of the loan – if it’s for an owner-occupier or investment property

You can find out what interest rate you might be eligible for in under five minutes using our home loan interest rate calculator. It’s quick, easy and won’t impact your credit score.

To apply for a home loan, you’ll need to provide documents to verify your identity, employment, and financial position. 

To prove your identity:

  • Australian passport


  • International passport showing a valid Australian permanent residency visa

To prove your deposit:

  • 3 months banks statements showing a savings balance 

  • Recent share trading statement, showing current value

To prove your income:

For PAYG applicants you’ll need two recent payslips plus one of the following: 

• Most recent group certificate  
• Most recent notice of assessment  
• Current letter of employment 
• Bank statements - showing last 3 months’ salary 

For Self-Employed applicants, the required documents vary depending on how long you’ve been self-employed.

At least 6 months:

You’ll need to be able to show at least 6 months of GST and ABN registration and provide declaration of financial position, as well as one of the following: 6 months business bank statements, 6 months BAS-Pepper Money accountant’s letter (not accepted if ABN registered for < 12 months, on loan sizes > $1.5m or on Plus).

Over a year:

Last 2 years tax returns and notices of assessments, or

Last 2 years financial statements executed by a registered tax agent or accountant


We give you the flexibility to choose between a fixed, a variable rate, or both, on your Pepper Money home loan.

Fixed interest rate

 A fixed interest rate home loan simply means that you ‘fix’ the interest rate at whatever the rate is at the time of settlement for a set term (2, 3, 5, 7 or 10 years). That means your interest rate and payments will remain the same over that period, regardless of any increases or decreases to interest rate changes.

A Pepper Money fixed rate home loan may suit borrowers looking for:

  • The certainty of fixed repayments
  • Ability to break fixed rate with no break cost
  • Unlimited additional repayments allowed without penalty (no redraw available)
  • Available for purchases, refinances, debt consolidation or cash out for investment or personal purposes

Variable interest rate 

 A variable rate loan is a loan with interest rates that are subject to change throughout the term of your loan. This may be due to changes to the official cash rate set by the Reserve Bank of Australia (RBA) or if your lender changes the interest rate.

Variable interest rates may suit borrowers looking for:

  • Flexibility with repayment frequency and free online redraw (manual redraw fee is $50)
  • Options to reduce interest with a fully transactional 100% offset account (monthly fee applies)
  • Available for purchases, refinances, debt consolidation or cash out for investment or personal purposes

For more information, you can talk with one of our Lending Specialists on 137 377, they’re there to help. 

You can choose a Pepper Money split home loan. You can choose to have a portion of your loan with a fixed interest rate for a chosen loan term and the remainder with a variable interest rate. This can give you the flexibility of a variable interest rate loan and the repayment certainty of a fixed interest rate loan. Here’s how it works:

  • Choose a fixed rate term and know what the repayments and interest rate will be for that period
  • Enjoy the features of a variable interest rate loan, such as a free online redraw facility and a fully transactional 100% offset account (monthly fee applies to offset account and manual redraw requests)

The important legal bits

Information and interest rates are correct as of 16 November 2023 and subject to change at any time. 

Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licenced financial or tax adviser.

All applications are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply. 

* Pepper Money variable interest rates range from 6.84%p.a. - 12.19% p.a. (Comparison rates range from 7.02%p.a. - 12.34%p.a.^) View all variable rates ». The actual interest rate will depend on the borrower’s circumstances and the information verified during the loan application assessment.

^ Comparison rate is calculated on a secured loan of $150,000 for a term of 25 years.  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Visa Debit card is issued by Indue Limited ABN 97 087 822 464 and distributed by Pepper Finance Corporation Limited ACN 094 317 647 and/or through Pepper Money accredited mortgage brokers. Refer to the Conditions of Use and Target Market Determination (TMD).

Get in touch with a Lending Specialist

Tell us about your situation. The more we learn, the better we can help.