October’s cheapest 3-year fixed rate home loans revealed

Adam Smith 6 October 2017 NEWS

Cardboard houses and coins

Demand for fixed rate mortgages is rising, and you could lock in a cheap rate now before borrowing becomes more expensive.

Details of the home loans featured on this page were correct at 4 October 2017. Check out all our cheapest loans here

Fixed rate demand is at nearly a four-year high, with 1 in 3 Australians choosing to lock in their rate. Data from Mortgage Choice shows fixed rate home loans accounted for 31.05% of all loans written through the broker in August, up from 29.63% in July.

“The growing popularity of fixed rate mortgages is not a surprise. Recently, we have seen a number of Australia’s lenders cut the interest rates charged on some of their fixed rate products,” Mortgage Choice chief executive John Flavell said.

“As a result, fixed rate home loans are now very competitively priced, which has made them more attractive to homeowners who are looking for repayment security.”

In September, four of the lenders in finder.com.au’s database lowered their fixed rates, moving between 10 and 20 basis points. And while the Reserve Bank held the official cash rate at 1.50% at its October cash rate meeting, there is growing consensus that the next move by the RBA will be upward. With this in mind, it could be time to lock in a competitive fixed rate.

With this in mind, we’ve put together a list of the 10 cheapest 3-year fixed rate home loans available through finder.com.au. To make sure the loans are useful for the average homebuyer, we applied the following criteria:

  • All loans listed are principal and interest loans for owner-occupiers
  • All loans have a maximum loan-to-value ratio (LVR) of at least 80%
  • Each loan has a minimum loan amount no more than $150,00 and a maximum amount of more than $500,000
  • We've excluded line of credit, guarantor and construction loans
  • Rates are correct as of 4 October 2017

Locking in a low rate now can keep you insulated from RBA hikes in the future. If you’re looking for certainty in your repayments, the 10 fixed rate home loans below are worth your attention.

*Our cheapest fixed rate home loans round-up is a monthly article that features the cheapest loans in finder.com.au's database. The rates and other information in this page are correct at the time of publication and are subject to change. There may be cheaper loans on the market than the ones listed here.

Want to compare more options? Check out all our cheapest home loans

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