30 year fixed rate home loans

Rates and Fees verified correct on December 5th, 2016

Get a fixed rate home loan and enjoy repayments which won't change, sometimes for as long as 30 years.

30yearfixed

Home loans fixed for 20 and 30 years offer long term certainty for homeowners in some parts of the world, like the USA, but they currently aren’t offered in Australia. This is mainly because the Australian market favours variable rate home loans (loans with rates can fluctuate due to outside circumstances) while Americans and those is some other countries are more attracted to fixed rate loans. This is probably because fixed rate loans allow you to plan ahead for payments and budget your money accordingly.

If you’re interested in a lengthy fixed rate home loan you can still find one through certain lenders in Australia. These lenders can provide you with a fixed rate home loan for a maximum of 15 years. While this may sound ideal in terms of stability and certainty, it’s crucial that if you want to fix for a long period of time you seek professional financial advice.

Long term fixed rate home loan comparison

Rates last updated December 5th, 2016
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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
RAMS Fixed Rate Home Loan - 10 Year Fixed Rate (Owner Occupier)
Know your repayments with this 10 year fixed rate home loan.
5.79% 5.86% $595 $20 monthly ($240 p.a.) 95% More info
RAMS Self-Employed Fixed Rate 10 Years (Owner Occupier)
Lock in an interest rate for 10 years and be comforted by knowing how much you will repay each month.
6.09% 6.18% $595 $20 monthly ($240 p.a.) 80% More info
Commonwealth Bank Fixed Rate Home - 7 Year Fixed Rate (Owner Occupier)
Plan your budget for a longer period with this 7 year fixed rate home loan.
7.74% 6.83% $600 $8 monthly ($96 p.a.) 90% More info
ANZ Interest in Advance Loan (Yearly) - 10 Years Without Breakfree Package
Have a long term plan for your loan and pay your interest in advance for 10 years.
7.49% 7.08% $600 $10 monthly ($120 p.a.) 90% More info
ANZ Interest in Advance Loan (Yearly) - 7 Years Without Breakfree Package
Lock in an interest rate and the ability to pay it yearly in advance for 7 years.
7.49% 6.76% $600 $10 monthly ($120 p.a.) 90% More info
ME Bank Flexible Home Loan Fixed - 6 Year Fixed Rate (Owner Occupier)
Lock in your rate for 6 years with the option to make up to $30,000 in extra repayments during this time.
5.49% 5.22% $0 $0 p.a. 95% More info
ME Bank Flexible Home Loan Fixed - 7 Year Fixed Rate (Owner Occupier)
Pay no application or ongoing fees and lock in your rate for 7 years.
5.49% 5.26% $0 $0 p.a. 95% More info
Commonwealth Bank Wealth Package Fixed Home Loan - 7 Year Fixed (Owner Occupier)
Lock in your interest rate longer and still enjoy the benefits of a package home loan.
7.59% 6.77% $0 $395 p.a. 95% More info
ANZ Interest in Advance Loan (Yearly) - 7 Years With Breakfree Package
Plan your investment portfolio by paying your interest in advance for 7 years including the benefits of ANZ's Breakfree Package.
7.34% 6.52% $600 $10 monthly ($120 p.a.) 90% More info

What is a 30 year fixed rate home loan?

A fixed rate home loan has a flat interest rate that doesn’t change for a set amount of time that is agreed upon between you and your lender. In countries like the USA, home buyers can choose fixed rate home loans for long periods of time including the popular 30 year fixed rate home loan. This allows them to plan out their payments and set monthly budgets accordingly. While these are popular in the States and offered by most home loan lenders there, Australian lenders don’t really offer these long-term loans mainly due to buyers’ tendencies to choose variable rate loans.

Currently, you’ll be able to find fixed rate home loans in Australia for a maximum of between 10 and 15 years. You might also be able to extend your fixed rate loan for another 15 years once the original term is up. This basically gives you the 30 year fixed rate that Americans enjoy.

How do they work?

A long-term fixed rate home loan works in the same way that any other fixed rate home loan does. The only difference between the loans is that with the 30 year fixed rate loan the interest rate is fixed for the length of the loan instead of shorter terms such as one to five years.

Fixed rate loans do offer stability for the length of the loan but they sometimes are without the additional features of shorter fixed rate loans or their variable loan counterparts. Long-term fixed rate home loans, like those offered in the States, usually are without features like redraw facilities and offset accounts. These loans may also take away your ability to make additional repayments to pay off your loan faster or they may set limitations regarding how much in extra repayments you can make each year.

Pros and cons of 30 year fixed rate home loans

As with any home loan there are pros and cons related to carrying a long-term fixed rate home loan like the 30 year fixed rate loan, or even shorter loan terms such as the 15 year fixed rate home loan.

  • Pros

  • Stability of set repayments for the life of the loan or a large portion of the life of the loan
  • The ability to create a monthly budget that won’t need to change much over the life of the loan.
  • Cons

  • 30 year fixed rate home loans are not offered in Australia, 15 year fixed terms are rare
  • Lack of features
  • Limited ability to make additional repayments
  • High exit fees
  • If rates decrease you may be stuck with a loan with a high interest rate

Things to consider about lengthy fixed term home loans

There are always factors to consider when choosing a home loan so there are obviously things to take into consideration when choosing long-term fixed rate loans. You should first decide if a fixed rate home loan is best you and your situation.

If your situation is suitable for fixed rate home loans start to think about other factors that may affect you. If there is a possibility that you’ll sell your property during the fixed term you may want to reconsider choosing a lengthy fixed rate home loan. Lenders usually tack on heavy fees for breaking this type of loan contract. You should also consider the limitations put on additional repayments. If you want to have flexible repayments on your loan this long-term option isn’t for you. Finally, if you’d like to benefit from additional features like redraws, offset accounts, credit lines, or repayment holidays you should choose another loan option since lengthy fixed rate home loans usually don’t offer these benefits. If these benefits are offered by a lender they are usually with conditions and expensive fees.

How to compare fixed rate home loans

Compare a range of loans from a variety of lendersWhether you choose the maximum 15 year fixed rate home loan or another type of long-term fixed rate loan you should compare loans available from the various lenders, including not just banks but also building societies and credit unions. This will help you get everything you want for the best possible price. Also consider speaking to a broker and ask about the features associated with each available loan and look at them side by side to pick the best deal for your situation.
Compare interest ratesWhen comparing loans, look to the rate amount first since this is the main factor that you're interested in. Also take into account the comparison rate, which factors in some of the fees associated with the loan.
Consider feesYou'll also want to look at all out-of-pocket fees such as application, legal, valuation and settlement fees. Finally, you'll want to compare the offered additional features. If you want a loan that offers you flexible repayments be sure to look for one that has the best deal regarding that feature. By comparing loans you'll be able to find exactly what you're looking for at the best possible price.

While 30 year fixed rate home loans are popular in other parts of the world they still aren’t offered in Australia. You can find a 15 year fixed rate loan with an option to extend your rate for an additional 15 years.

Compare shorter term fixed rate loans

Marc Terrano

A passionate publisher who loves to tell a story. Learning and teaching personal finance is his main lot at finder.com.au. Talk to him to find out more about home loans.

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