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Floating interest rate home loan

A floating rate loan is also known as a variable rate loan. With this loan your interest rate can go up and down in line with market conditions. You also have the flexibility to repay your loan at any time without cost.

Benefits at a glance

  • Flexibility to make extra payments without cost.
  • Drawdown funds as a lump sum or instalments.
  • Switch to a fixed interest rate at any time.
  • Interest only option available.

Is it right for me?

A floating (Housing variable) interest rate loan may suit you if you want the discipline of making regular payments but also the flexibility to increase these and make extra payments at any time.

With this loan, there is no early repayment adjustment if you want to make extra payments. So it’s an option to consider if you want to repay all or part of your loan early.

Keep in mind your interest rate, and therefore your payments, may go up and down in line with market conditions. So if you’re looking for payment certainty, you might like to consider either a fixed interest rate home loan or have a combination of both fixed and floating.

About this loan

Flexibility to repay early

With this loan, if you increase your regular payments or make extra payments to repay your loan early, you won’t incur early repayment adjustments.

These adjustments can be made through ASB Home Central.

If you don't plan to make any extra payments towards your loan, a fixed interest home loan may be more suitable. 

Repayments that reflect the market

A floating interest rate may go up and down in line with market conditions, meaning your payment amount will do the same.  So when interest rates are low, you could benefit.

Choose how you repay the interest and principal

There are different repayment options to choose from. This includes a table loan, a reducing loan or interest-only.

Lock in an interest rate anytime

If you want to switch to a fixed interest rate at any stage, you can through ASB Home Central. Having payment certainty might help you manage your finances. 

Choose a lump sum or instalments

You can drawdown your funds in one lump sum or as instalments over a 12 month period.  Drawing down in instalments could be helpful if the loan is for a building project and you don’t need all the funds at once. You’ll only be charged interest on the funds you use which can help you save on interest costs.

Choose a single loan or a split loan structure

You have the option of a single loan on a floating interest rate or you can choose to split the amount you borrow across a combination of different interest rates.

A split loan can give you both the convenience of payment certainty and flexibility.

Home loan interest rates

Min 20% equity

12-month fixed rate
18-month fixed rate



24-month fixed rate



36-month fixed rate
48-month fixed rate



60-month fixed rate
6-month fixed rate
18-month fixed rate



24-month fixed rate
36-month fixed rate
48-month fixed rate
60-month fixed rate
6-month fixed rate
12-month fixed rate
Housing variable rate

Rates may change. Loan processing fee of up to $400 may apply. After the fixed rate period the Housing Variable Rate will apply. For those with less than 20% equity see here for rates.

We're here to help

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Give us a call

You can pick up the phone and call one of our home lending team, weekdays 8am-6pm and on Saturday 8:30am-5pm.

0800 100 600

+64 9 306 3000 for overseas

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Other options to consider

Home loans Floating interest rate home loan