Fixed home loan rates

Compare fixed home loan rates starting from 1.79% and start saving money on your mortgage today.

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years
Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Fees Monthly Payment

UBank UHomeLoan Fixed P&IHome 1Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
1.79%
2.18%
  • App: $0
  • Ongoing: $0 p.a.
$540
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.

86 400 Own Home Loan Fixed P&IHome 1Y Fixed≥ 20% Deposit

86 400 Own Home Loan Fixed
1.94%
2.55%
  • App: $250
  • Ongoing: $250 p.a.
$552
Fix to this very competitive rate for one year. This loan requires a 20% deposit.

Well Home Loans Balanced Fixed Home Loan P&IHome 1Y Fixed≥ 10% Deposit

Well Home Loans Balanced Fixed Home Loan
1.99%
1.90%
  • App: $250
  • Ongoing: $0 p.a.
$555
Owner occupiers can get a sharp fixed rate for the first year, plus an offset account. Available with a 10% deposit.

IMB Fixed Rate Home Loan P&IHome 2Y Fixed≥ 20% Deposit

IMB Fixed Rate Home Loan
2.27%
2.69%
  • App: $449
  • Ongoing: $6 per month
$577
A 2 years fixed with the competitive features.

Macquarie Bank Basic Fixed Home Loan P&IHome 3Y Fixed≥ 30% Deposit

Macquarie Bank Basic Fixed Home Loan
3.09%
2.41%
  • App: $0
  • Ongoing: $0 p.a.
$641
Get a low interest rate and a mortgage with flexible, basic features. No application or ongoing fees. Requires a 30% deposit. Refinancers can switch with a convenient digital application.

UBank UHomeLoan Fixed P&IHome 3Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
2.49%
2.29%
  • App: $0
  • Ongoing: $0 p.a.
$594
A competitive fixed rate loan with no ongoing fees. Requires a 20% deposit.

Well Home Loans Balanced Fixed Home Loan P&IHome 2Y Fixed≥ 10% Deposit

Well Home Loans Balanced Fixed Home Loan
2.27%
1.95%
  • App: $250
  • Ongoing: $0 p.a.
$577
A low fixed mortgage with an optional 100% offset account. Not available for construction purposes.

UBank UHomeLoan Fixed IOHome 1Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
2.14%
2.21%
  • App: $0
  • Ongoing: $0 p.a.
$567
A one year fixed rate offer with no ongoing bank fees.

ME Flexible Home Loan Fixed with Members Package P&IHome 2Y Fixed≥ 20% Deposit

ME Flexible Home Loan Fixed with Members Package
2.29%
3%
  • App: $0
  • Ongoing: $395 p.a.
$578
$3,000 cashback when refinancing a loan of $250,000 or more. Other conditions apply. Lock in a competitive rate for owner occupiers for two years. Comes with a 100% offset account.

UBank UHomeLoan Fixed P&IHome 5Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
2.99%
2.53%
  • App: $0
  • Ongoing: $0 p.a.
$633
A five year fixed rate offer with no ongoing bank fees.

Well Home Loans Balanced Fixed Home Loan P&IInvestment 2Y Fixed≥ 10% Deposit

Well Home Loans Balanced Fixed Home Loan
2.29%
2.22%
  • App: $250
  • Ongoing: $0 p.a.
$578
A 2 year investor rate with principal and interest repayments. Optional offset account with a $10 monthly fee. Not available for construction purposes.

UBank UHomeLoan Fixed P&IInvestment 1Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
2.14%
2.35%
  • App: $0
  • Ongoing: $0 p.a.
$567
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.

Well Home Loans Balanced Fixed Home Loan P&IHome 3Y Fixed≥ 10% Deposit

Well Home Loans Balanced Fixed Home Loan
2.57%
2.06%
  • App: $250
  • Ongoing: $0 p.a.
$600
A low 3 year fixed rate for home buyers. Add a 100% offset account with a $10 monthly fee. Not available for construction purposes.

UBank UHomeLoan Fixed IOInvestment 3Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
2.79%
2.47%
  • App: $0
  • Ongoing: $0 p.a.
$617
Pay no ongoing fees on this investment loan fixed for 3 years.

Macquarie Bank Basic Fixed Home Loan P&IHome 3Y Fixed≥ 20% Deposit

Macquarie Bank Basic Fixed Home Loan
3.14%
2.46%
  • App: $0
  • Ongoing: $0 p.a.
$645
Borrow up to $5,000,000 with this basic 3 years fixed rate home loan. Refinancers can switch with a convenient digital application.

Well Home Loans Balanced Fixed Home Loan P&IInvestment 3Y Fixed≥ 10% Deposit

Well Home Loans Balanced Fixed Home Loan
2.59%
2.31%
  • App: $250
  • Ongoing: $0 p.a.
$601
A competitive 3 year investor rate with principal and interest repayments. Optional offset account with a $10 monthly fee. Not available for construction purposes.

UBank UHomeLoan Fixed P&IInvestment 3Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
2.64%
2.44%
  • App: $0
  • Ongoing: $0 p.a.
$605
Pay no ongoing fees on this competitive investment loan and fix your rate for 3 years.

86 400 Own Home Loan Fixed P&IHome 2Y Fixed≥ 20% Deposit

86 400 Own Home Loan Fixed
2.34%
2.59%
  • App: $250
  • Ongoing: $250 p.a.
$582
Get a low fixed rate for the first two years of your loan. Split and redraw facilities available. Requires a 20% deposit.

UBank UHomeLoan Fixed IOHome 3Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
2.74%
2.35%
  • App: $0
  • Ongoing: $0 p.a.
$613
A competitive 3 year fixed rate with no ongoing bank fees.
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Fixed rate home loans explained

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.

While variable rates can rise and fall at the lender's discretion, fixed rates don't change during the "fixed" period – usually between 1 and 5 years, though it can be up to 10 years.

If you decide to fix your rate, it means that if variable rates drop, your repayments won't change. You may also have to wait to refinance and take advantage of a lower rate.

Here are a few quick facts to keep in mind about fixed home loan rates:

  • Interest rate. Historically, fixed interest rate loans have typically been more expensive than variable rate loans, though this always depends on the specific loan and lender. In the first half of 2020, this trend began shifting, and in 2021, the majority of lenders now offer fixed rate loans that are lower than variable rates.
  • Flexibility. A fixed rate mortgage is less flexible than a variable rate loan because you are "locked in" to the loan for the time period that you signed up for. A fixed rate loan is a contract.
  • Extra repayments. You might not be able to make extra repayments on your loan, meaning you can't make headway on your loan principal by paying more than the scheduled repayment each month.
  • Break costs. If you want to sell the property or refinance to another loan while you're still in a fixed loan contract, the break fee you'll be charged for leaving the mortgage can be substantial – thousands, or even tens of thousands, of dollars.
  • Features. If you have some savings behind you and you're looking for loan features like an offset account with your loan, then a fixed rate loan may not be suitable. Fixed rate loans with offset accounts are comparatively rare.

Are fixed rates cheaper than variable loans?

Right now, interest rates on fixed rate loans are cheaper than variable rates. But historically, it's usually been the case that fixed rates are slightly higher than variable.

In the latter half of 2019, the most competitive fixed rates were equal to their variable counterparts. Since the onset of the pandemic, fixed rates have plunged. Now, they're actually slightly cheaper or equal to variable rates.

By late 2021, we began to see fixed rates start to trend upwards again.

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).

This is why the key thing to appreciate is that a fixed home loan rate is about balancing a good rate with certainty about set repayments. If you're happy with the rate and don't think you'll need to refinance or sell the property any time soon, then fixing may be a good move.

The benefits of fixing your loan

  • In the current market, the biggest benefit of fixing your home loan rate is the interest rate savings. Fixed rate loans are the lowest they've ever been and it's cheaper to fix than have a variable rate loan.
  • The next biggest advantage is that your repayments won't change. 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.
  • If variable interest rates rise during the fixed rate period, you might end up with a better rate than the average.

The disadvantages of fixing your loan

  • Fixed rate loans don't offer as much flexibility compared to variable rate mortgages, so you often can't make extra repayments or make changes to the loan without paying fees and penalties.
  • 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.
  • If you need to leave the loan for any reason, you'll pay a break fee. Refinancing, a new job, moving overseas, getting divorced: none of these reasons will give you a "get out of jail free" card with your lender. Read this guide to learn more about breaking a fixed rate loan.
  • Lastly, there's the chance that variable interest rates could drop lower. Those with variable mortgages will then get lower repayments, while yours stay fixed.

What happens when my fixed rate home loan ends?

When your home loan's fixed period ends, your loan will automatically switch to a variable loan with the same lender, and you'll pay the variable rate that the lender charges at the time.

There's no possible way to know what the variable rate will be 1 to 5 years into the future, but when you sign up for the loan, your bank will tell you their current revert rate. This is the variable interest rate that your fixed loan would switch to after the fixed period if interest rates were to remain the same over that period.

The variable rate you end up paying may be higher or lower.

Importantly, once your fixed rate ends, you will be free to refinance your loan – at which point, you can choose whether to refinance to a lower variable rate or sign up for another fixed rate period.

What happens if I want to end my fixed rate home loan early?

It may be possible to end your fixed rate loan contract early – however, there could be a hefty price to pay.

A fixed rate home loan is a legal contract between you and your lender, which guarantees that you'll repay a fixed amount of interest on a loan over a specified time period.

If you decide to break that contract by switching loans or lenders or selling the property and closing the loan altogether, your existing lender will want to be compensated for any loss they incur.

Breaking a home loan during a fixed interest period can be expensive. It is calculated using a number of factors: learn how break costs are calculated.

Do fixed rate home loans let you make additional repayments?

Some fixed rate home loans let borrowers make additional repayments. These extra payments can be made usually up to a limit set by your lender.

In most cases, if you make additional repayments above the set limit or repay the fixed rate loan in full, you may incur additional break costs for early repayment. Check the outline of fees with your lender before you start to make additional repayments.

How do I compare fixed rate loans?

To find a good fixed rate product that may suit your needs, consider the following 5 important questions.

  1. How long do I plan to live here? Not sure whether you want to stay in your home long term? Considering moving in the next 12-24 months? Or are you simply not sure what the future holds and you don't want to be locked in? If there is any chance you may wish to sell the property during the fixed rate period, then think twice before signing up for the loan. Break costs can be very expensive.
  2. What are the interest rates on offer? For any home loan interest rate, a lower rate is obviously going to save you money. But as mentioned above, 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.
  3. Are there any other fees I need to know about? Another consideration is the fees and charges 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.
  4. What fixed rate period should I lock in? 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.
  5. What are my short-term property goals? 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.
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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."

Fixed versus variable rates: what are the differences?

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.

Let's look at a quick example. Say you have a 3-year fixed rate loan with 1 year left on the fixed period.

You fixed your rate at 3.90% 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 2.40% for new borrowers.

You can use this lower rate to get a rough estimate of your loan break costs. The difference in your original fixed rate versus the current offer of 3.00% can stand in for the more complicated difference in funding costs. The following is the basic break fee calculation:

  • Loan amount ($400,000) x fixed period remaining (1 year) x rate difference % (0.60%) = $2,400

Keep in mind that this is an estimate only, and every lender has its own way of calculating break costs. A number of things are factored in, including the following:

  • The length of the fixed rate term remaining
  • The value of the loan
  • The lender's current fixed rate offer
  • The current Bank Bill Swap Rate (BBSR)

Assuming that your break cost is $2,400, as per our example above, consider the potential savings if you switched to a much lower rate from another lender, such as 2.19%. You'd save money in the long run, even when paying the $2,400 break fee because your repayments would be lower.

Old loanNew loan
Loan amount$400,000$400,000
Interest rate3.90%2.19%
Monthly repayment$1,886$1,516
Yearly savingN/A$4,440
Break cost$2,400$0
Saving minus break costN/A$2,040

In the first year after switching, you would save around $2,000 even after paying the break cost.

After the first 12 months, you'd save even more over the life of the loan if the 2.19% interest rate is lower than the variable rate on offer at the time.

What is a split rate loan?

This could be the ideal solution if you're not quite sure whether you should go for a fixed or a variable rate loan.

Many lenders allow you to split your loan into fixed and variable portions, which essentially lets you hedge your bets.

For instance, you could choose to lock in 70% of your loan to a fixed rate. The benefit of this is the lower interest rate and repayment certainty. You then attach the remaining 30% to a variable rate home loan. The benefit of this is that you can still access features like an offset account to pay less interest based on your savings. Also, if you ever have to end your loan for any reason, the break cost will be lower as only 70% of the loan's value is fixed.

A split loan may be the best of both worlds. If you're still not quite sure which option is best for you, consider speaking to a mortgage broker for expert advice.

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    20 Responses

      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 Customer Care
        MarcMay 16, 2016Staff

        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 Customer Care
        MarcMay 5, 2015Staff

        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

      Default Gravatar
      LyndaApril 19, 2015

      I have a housing loan with Westpac bank and had to lock it in for 3 years. I have one year to go, can I break that agreement and go to a variable loan as the rates are much lower

        Default Gravatar
        JodieApril 28, 2015

        Hi Lynda,

        Thank you for getting in touch.

        You might be able to break from your fixed loan, however, there are fees involved in doing this before the fixed period is over. You can see more information on break costs from our guide. Before making any decisions you should contact Westpac and see what these fees are charged for your particular loan.

        Regards,
        Jodie

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