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Fixed rate home loans

Fix your home loan's interest rate and forget all about rate rises for a while. Compare fixed rates as low as 5.89%.

What you need to know

  • Fixed rate home loans let you lock in an interest rate for a period of time. Your repayments do not change during the fixed period.
  • When your rate is fixed you may be unable to make extra repayments and it can be costly to refinance.
  • Every month Finder picks the top fixed rate home loans offered by our partners, determined by interest rates, fees, deposit size and other factors.

Finder's top fixed rate home loan picks for December 2023

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Name Interest Rate p.a. Comparison Rate p.a. Fees Monthly Payment
Principal & Interest 4Y Fixed10% min. depositOwner-occupierOffset account
Interest Rate
6.40%
Comparison Rate
6.24%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$2,505
Go to siteMore Info
Principal & Interest 3Y Fixed10% min. depositOwner-occupierOffset account
Interest Rate
6.40%
Comparison Rate
6.22%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$2,505
Go to siteMore Info
Principal & Interest 2Y Fixed10% min. depositOwner-occupierOffset account
Interest Rate
6.45%
Comparison Rate
6.21%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$2,518
Go to siteMore Info
Principal & Interest 2Y Fixed20% min. depositInvestment
Interest Rate
6.39%
Comparison Rate
8.05%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$2,502
Enquire now

Speak to a broker about your options

Consultant
Principal & Interest 1Y Fixed10% min. depositOwner-occupierOffset account
Interest Rate
6.50%
Comparison Rate
6.19%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$2,531
Go to siteMore Info
Principal & Interest 3Y Fixed10% min. depositInvestment
Interest Rate
6.64%
Comparison Rate
8.41%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$2,568
Enquire now
Principal & Interest 2Y Fixed20% min. depositOwner-occupier
Interest Rate
6.44%
Comparison Rate
6.64%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$2,515
Enquire now
Principal & Interest 2Y Fixed20% min. depositOwner-occupier
Interest Rate
5.99%
Comparison Rate
7.76%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$2,399
Go to siteMore Info
Principal & Interest 4Y Fixed5% min. depositInvestment
Interest Rate
6.59%
Comparison Rate
6.46%
Fees
Application: $499
Ongoing: $0 p.a.
Monthly Payment
$2,555
Enquire now
Principal & Interest 3Y Fixed20% min. depositInvestment
Interest Rate
6.69%
Comparison Rate
7.50%
Fees
Application: $0
Ongoing: $10 p.a.
Monthly Payment
$2,581
Enquire now
Principal & Interest 4Y Fixed10% min. depositInvestment
Interest Rate
6.59%
Comparison Rate
7.83%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$2,555
Enquire now
Principal & Interest 3Y Fixed20% min. depositInvestmentMIn $300k
Interest Rate
6.69%
Comparison Rate
6.76%
Fees
Application: $300
Ongoing: $10 p.a.
Monthly Payment
$2,581
Enquire now
Principal & InterestInterest only 3Y Fixed20% min. depositOwner-occupier
Interest Rate
6.29%
Comparison Rate
6.30%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$2,476
Enquire now
Principal & Interest 2Y Fixed30% min. depositInvestment
Interest Rate
6.29%
Comparison Rate
7.95%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$2,476
Enquire now
Principal & Interest 2Y Fixed20% min. depositOwner-occupier
Interest Rate
6.49%
Comparison Rate
7.65%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$2,528
Enquire now
Principal & Interest 3Y Fixed10% min. depositInvestmentOffset account
Interest Rate
6.49%
Comparison Rate
7.67%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$2,528
Enquire now
Principal & Interest 3Y Fixed20% min. depositInvestment
Interest Rate
6.49%
Comparison Rate
7.05%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$2,528
Enquire now
Principal & Interest 2Y Fixed20% min. depositOwner-occupierMIn $300k
Interest Rate
6.74%
Comparison Rate
6.64%
Fees
Application: $300
Ongoing: $10 per month
Monthly Payment
$2,594
Enquire now
Principal & Interest 4Y Fixed20% min. depositInvestment
Interest Rate
6.59%
Comparison Rate
7.67%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$2,555
Enquire now
Principal & Interest 2Y Fixed5% min. depositOwner-occupier
Interest Rate
6.79%
Comparison Rate
7.72%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$2,608
Enquire now
$2,000 cashback
Refinancers borrowing $250,000 or more can get a $2,000 cashback (Other terms, conditions and exclusions apply).
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Finding the best fixed rate home loan for you

Every month, our home loan experts analyse over 100 home loan rates from our database to find our best home loan picks. We only select home loans that are suitable for a typical borrower, so we don't include loans that require enormous deposits or have extra eligibility requirements.

We then rank these loans, with the winning loans having a combination of low interest rates and low fees.

All our picks are from lenders with whom Finder has a commercial partnership. The best loan for you may differ from our picks, so always research widely when comparing.

Why you can trust Finder's research

Rates
100+ rates compared
Expert
Analysis from the experts
Calendar
Picks updated monthly

Read our in-depth methodology

Check out our monthly best home loan rate picks to see more of our top picks.

What is a fixed rate home loan?

When you take out a home loan to buy a home or investment property, you can choose between 2 interest rate types: fixed and variable.

With a fixed rate you will lock in an interest rate for a set period, which is usually between 1 and 5 years, though it can be up to 10 years. The interest rate will not change, meaning your repayments will stay the same throughout the fixed period.

You may also have to wait to refinance to take advantage of a lower rate.

Should I fix my home loan rate?

The decision to fix your rate depends on your goals as a borrower and what you want from the loan. Fixing is not simply a way of betting that rates are rising and locking in a good deal now. Trying to time the market is always hard, and lenders are better at it than you.

Fixing is really about wanting certainty, and being comfortable locking in a good deal now. Even if variable rates may rise or fall.

A fixed home loan can give you peace of mind because, no matter what happens to official rates, your repayments won't budge. When rates are going up and times are tight, this can be priceless.

Nicole Pedersen-McKinnon

Nicole Pedersen-McKinnon
Freelance finance journalist

What's the difference between fixed rates and variable rates?

  • A fixed rate won't change (until the fixed period ends).
  • A variable rate can change at any time (these loans rose 8 times in 2022 and 5 times in 2023).
  • There are no fees for exiting a variable rate loan early (by refinancing, selling or paying off the loan early). Exiting a loan during the fixed period incurs a break cost.

If you decide to fix your interest rate, keep in mind that it is very difficult to "beat the bank" (that is, lock in a rate that is lower than the variable rate for the duration of the fixed term, thereby paying the bank less for your loan over the full fixed term period).

Fixed versus variable rates: What are the differences?

Pros and cons of a fixed rate home loan

Pros

  • In the current market, interest rates are rising fast. By fixing, you can avoid future rate rises (although you will have to opt for a higher rate when you do fix).
  • Your repayments won't change during the fixed period. This can give you a sense of certainty around your repayments; you can budget and know your loan repayments are consistent until the fixed period ends.

Cons

  • Higher rates. Fixed rates are higher than variable rates most of the time. But not always.
  • Less flexibility. Often you can't make extra repayments or changes to the loan without paying fees and penalties. If you need to leave the loan early, you will need to pay a break fee.
  • There's a chance variable interest rates could drop lower. Those with variable mortgages will then get lower repayments, while yours stay fixed. But this is never a certainty.
  • Most lenders don't offer fixed home loans with 100% offset accounts. This means if you have any savings, you won't be able to offset them against the interest you pay on your mortgage.

How do I find the best fixed rate home loan?

Finding the best fixed rate home loan is really about working out what you need, and finding a suitable loan with a low rate. To help you lock in the best fixed rate deal, start by considering these 5 factors:

Number 1

Property plans

If you're not sure how long you might be in the property, you should think twice about locking into a fixed rate home loan. If there is any chance you may wish to sell the property during the fixed rate period, you need to think about the expensive break costs associated with fixed rate loans.

Number 2

Interest rates

For any home loan interest rate, a lower rate is obviously going to save you money. But that's not the only consideration. If there's a chance you may need to sell the property or you're not sure of your plan in the next few years, it might be worth looking at variable rates to see if a competitive rate is on offer.

Number 3

Other fees

Another consideration is the fees your lender charges. Always pay attention to a loan's fees, especially annual or ongoing fees. These can quickly add up and cancel out all the benefits of the lower interest rate.

Number 4

Fixed rate period

Fixed rate borrowers have to choose terms between 1 and 5 years. Most loans give you multiple options, with different rates for each. Shorter fixed periods are typically lower, so 1-year terms are more competitive than 5-year terms.

Number 5

Loan repayments

If you want to make extra repayments into your loan to chip away at the loan principal as quickly as possible, then a fixed rate loan may not be the best option as extra repayments are often not allowed on these types of loans.

How long should I fix my rate for?

Most lenders offer fixed rate terms between 1 and 5 years. These loans all work the same, only the length of the fixed period is different. But if you start comparing different loans you may notice that shorter fixed terms have lower rates, while longer terms have higher rates.

1- and 2-year fixed rates

Shorter term fixed rates are usually the most competitive fixed rate loans. There's less risk for the lender because it won't be long before your loan reverts to a variable rate. Fixing for 1 or 2 years is also a good option for borrowers who think they may want to sell their property, refinance or pay off their loan in a few years.

The downside with shorter fixed terms is that you only get the fixed benefit for a short time.

3-year fixed rates

3 years is often a good balance between a reasonable length of time and a competitive rate. 3-year fixed rates tend to be quite competitive while giving you just a bit longer on a stable rate.

4- and 5-year fixed rates

Fixing for 4 or 5 years is quite a long time, and market rates can vary quite a lot in those years. These rates are often much higher than other fixed rates, and are less popular with borrowers. But if you think you've found a really good loan, don't anticipate needing to exit the loan early and really value knowing exactly how much you'll pay, a 4- or 5-year fixed rate loan is an option.

What to ask your bank before fixing your home loan

Nancy Youssef's tips for fixed rate home loans
Nancy Youssef is an award-winning finance broker and mentor.

Nancy Youssef, founder of Classic Home Loans, says there are questions to ask your bank or lender when fixing your home loan.

"There may be partial offset accounts available with some lenders for fixed rates, and although they are not 100%, they can be partially offsetting your savings. This is a niche with some lenders and not available with the majority," she says.

"There are also lenders who do allow additional repayments on fixed rates. And if you need to reduce payments for a period of time to interest only instead of principal and interest, some lenders will do it quite quickly as a variation to the contract, whereas others (especially in the current landscape) will need this submitted as a new credit application. If your situation is a little complicated or out of the ordinary, a conversation with your broker or bank is a good idea."

Breaking home loan

Can fixing be cheaper even after paying break costs?

Breaking a fixed rate loan to refinance to a lower rate can be expensive. But if your repayments get significantly lower after ending your fixed rate loan, you could still end up saving money in the long run.
This is more likely the case in an environment where interest rates have been falling, when you could find newer fixed rates at a lower rate than you're currently paying.
At the moment, with rising interest rates, the break costs may make it less cost effective.

Example: Say you have a 3-year fixed rate loan with 1 year left on the fixed period.

You fixed your rate at 6.00% and you have $400,000 remaining on your loan. The loan term is 30 years. Because fixed rates are lower now, your lender is offering a fixed rate of 5.20% for new borrowers. This is 80 basis points lower.

By using the lower rate you can get a rough estimate of your loan break costs. The difference in your original fixed rate versus the new offer can stand in for the more complicated difference in funding costs (for a more comprehensive guide on break fee costs see here). The difference is 80 basis points, or 0.80%.

The following is the basic break fee calculation:

  • Loan amount ($400,000) x fixed period remaining (1 year) x rate difference % (0.80%) = $3,200

Assuming that your break cost is $3,200, as in our example above, consider the potential savings if you switched to a much lower rate from a different lender. Let's say you break your old loan then get a variable rate loan with a rate of 4.80%.

In this scenario, you would pay the break fee but your repayments would shrink.

Old loanNew loan
Loan amount$400,000$400,000
Interest rate6.00%4.80%
Monthly repayment$2,399$2,099
Monthly savingN/A$300
Yearly savingN/A$3,600
Break cost$3,200N/A

With this lower rate you'd end up making up the cost of the break fee in 11 months.

But, with new loan interest rates now higher, your new scenario might look more like this:

Old loanNew loan
Loan amount$400,000$400,000
Interest rate6.50%5.70%
Monthly repayment$2,529$2,322
Monthly savingN/A$207
Yearly savingN/A$2,484
Break cost$3,200N/A

In this situation it would take 16 months for you to make back the cost of the break fee.

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More fixed rate home loan questions

  1. Finder's database, accessed 2 August 2023

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22 Responses

    Default Gravatar
    BradleyMarch 12, 2022

    Want to refinance have a investment property through SMSF want to get another,are rates exspected to go up soon and what term should i fix

      AvatarFinder
      RichardMarch 18, 2022Finder

      Hi Bradley,

      The decision to fix your interest rate, or stick with a variable rate, depends on many factors. Rates may rise, but variable rates are often competitive compared to fixed rates. And these loans are easier to refinance too.

      It’s worth seeking professional advice from a mortgage broker to get personalised advice and options.

      If you do not have a preferred lender yet, you can view our guide on Refinancing Home Loans to see your options.

      Use the comparison table to compare and choose. Then click the Go to Site button to learn more and to apply.

      Don’t forget to check the product terms and conditions, and eligibility requirements to make sure that it would suit your needs.

      I hope this helps!

      Regards,
      Richard

    Default Gravatar
    laurenbaker@live.com.auAugust 13, 2019

    Are there any banks that will loan to a single mother receiving parenting payment and Family tax benefits A & B as well as weekly child support. I also have 2 thirds of the total value of the property as a deposit so for me it is more financially viable than to continue renting?

      Default Gravatar
      NikkiAugust 14, 2019

      Hi Lauren,

      Thanks for your inquiry. There are home loan options for single parents like you. Most lenders will only accept certain types of Centrelink payments and may not take the whole amount of your payment so carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.

      Regarding renting, this will ultimately depend on how your monthly income goes and how long you can afford to pay rent.

      A mortgage broker is the best person to reach out to see your options for home loans. They can give you a multitude of options according to your situation. In the meantime, to give you an idea of how your monthly repayments will go, you can use our home loan eligibility calculator.

      Hope this helps and reach out to us again for further assistance.

      Best,
      Nikki

    Default Gravatar
    MalkitMay 14, 2016

    I am already in fixed plan for 3 years. 1 and a half years have passed can I change my plan or my bank?

      AvatarFinder
      MarcMay 16, 2016Finder

      Hi there,

      Thanks for the question.

      Borrowers can leave a fixed rate home loan early, but doing so can come with expensive break fees. You can read our fixed-rate home loan break costs guide to learn more.

      I hope this helps,
      Marc

    Default Gravatar
    WaleedJune 21, 2015

    if buying a brand new home in Brisbane ,do I still have to pay stamp duty? and iam a first home buyer

      Default Gravatar
      JodieJune 22, 2015

      Hi Waleed,

      Thanks for your inquiry.

      First home buyer schemes vary between each state and territory nationwide, you may use this article on your state-by-state guide to the First Home Owners Grant.

      Stamp duty is also something that varies by state and territory country-wide, please see our page on how to work out your stamp duty for further information.

      To get the most accurate information it would be best to contact your local state revenue service.

      Regards
      Jodie

    Default Gravatar
    SharonMay 4, 2015

    Just wanted to ask all the things that need to be considered when getting a home loan. The things I can think of are
    Application fee
    On going fees
    Off set accounts

    What other things are there.
    Sharon

      AvatarFinder
      MarcMay 5, 2015Finder

      Hi Sharon,

      Thanks for the question.

      It’s great to see someone serious about home loan comparison.

      I would also add to this list:
      – Interest rate
      – Comparison rate
      – What type of interest rate you’d like e.g fixed, variable or split
      – Can you make extra repayments on your loan (important if you fix in a rate)
      – What level of customer service you need

      We have written a detailed guide on all of these factors in our home loans guide.

      I hope this helps,
      Marc

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