10-year fixed home loans will keep your repayments the same for the next 10 years.
It is very rare to fix your home loan for longer than 5 years. Very few loans in Australia give you the option to fix for this long.
Fixing for 10 years means locking in a rate that's much higher than current averages. And if you need to break the loan the fee will be expensive.
What is a 10-year fixed rate home loan?
When you get a 10-year fixed rate home loan, you lock in the certainty of knowing that your interest rate and repayments will remain the same for 10 years.
After the 10 year term, the loan changes to a variable rate.
Can you pay a fixed rate loan off faster?
Most variable rate home loans enable borrowers to make extra repayments. Some fixed rate loans do too, but they usually have a cap of around $10,000 to $25,000 a year.
10 year fixed rate loans are rare and expensive
There are only 10 home loans in Finder's database with a fixed rate period of 10 years. Most of these are from ANZ. All of these loans have interest rates well above the average, some above 7%, making them expensive options. But that's the price you pay for a decade of certainty.
Source:Finder's home loan database
Pros and cons of a 10-year fixed rate home loan
Pros
Repayments won't change for 10 years. You can plan your budget effectively and you can even sign up for another fixed rate period at the end of the 10 years, if you wish.
Protected from rising interest rates. If the Reserve Bank of Australia (RBA) increases the cash rate, or your lender hikes up home loan interest rates, you don't have to worry.
Extra repayments. While fixed rate home loans don't normally offer much flexibility, you can still find loans that allow you to make some extra repayments, as well as loans that come with linked offset accounts.
Cons
No benefit when interest drops. If the RBA or your lender drops variable home loan interest rates, you don't benefit.
Break fees. If you decide to repay your loan ahead of schedule, or if you want to look for refinancing options, there's a good chance you'll have to pay considerably high exit fees.
No offset account. Fixed rates generally don't come with the option to add an offset account, which is one of the most useful home loan features.
How to compare long term fixed rate home loans
To make sure you get a great deal on a 10-year fixed rate loan, pay attention to the rate, the fees and the loans' features.
Focus on the following:
Look for a lower rate
The longer the fixed rate term, the higher the interest rate will be. So if you decide you want a 10-year fixed rate, compare your options to find a lower one.
Look for a loan with low fees
When some loans come with multiple fees and others almost none, a low-fee loan is a no-brainer.
A lower interest rate is more important, but low fees are another way to save on your loan costs.
Loan features
Fixed rate loans have fewer features than variable rate loans, like 100% offset accounts or the ability to make extra repayments. But some do, so it's worth comparing. Especially as you won't be moving onto a variable rate any time soon.
Our expert says: Should you fix your mortgage rate for 10 years?
"If you're fixing for 10 years you're basically committing to not moving house or refinancing for a decade, and are willing to miss out on a cheaper home loan rate and savings that come with repaying your loan faster. The upside? You can budget perfectly for your repayments each month. Personally I don't think it's worth it for almost any borrower, but this is entirely up to you."
At the end of the 10 year period your loan will usually revert to the standard variable rate offered by your lender. Alternatively, you can elect to fix your home loan for another fixed period, which may be 10 years or shorter depending on what your lender offers.
Yes, some loans allow you to split the loan amount so one portion attracts a fixed rate and the other portion attracts a variable rate. This allows you to benefit from both rates and at the end of the fixed rate term period, the entire amount attracts a standard variable rate.
When banks offer fixed rate loans they have to factor in the risk of interest rates dropping in the future, and this is essentially why they attract higher interest rates. Besides, these loans also offer borrowers the convenience of fixed repayments.
With over 20 years of experience in property, finance and investment journalism, Sarah is a trusted expert whose insights regularly appear across television, radio, and print media, including Sunrise, ABC News, and Yahoo! Finance. She has previously served as managing editor for Your Investment Property and Australian Broker, and her expert advice has been shared in the media over 3,500 times since 2023 alone. Sarah holds a Bachelor’s degree in Communications and a Tier 1 Generic Knowledge certification, which complies with ASIC standards.
See full bio
Sarah's expertise
Sarah
has written
211
Finder guides across topics including:
Are there any 10 year fixed interest rates for an investor prefer interest only but i believe this is now not available must be p&i
Finder
DeeDecember 3, 2017Finder
Hi John,
Thanks for your question.
We currently don’t feature a list of lenders that offer 10-year fixed interest home loans for investment.
Alternatively, you may consider fixed-rate home loans. You can use our “advanced search” filter on the page to customize the listed lenders. The maximum term for a fixed-rate investment home loan that I can find on the page is 2 years.
If you need assistance in finding a suitable home loan option, you may also get in touch with a mortgage broker.
Early repayment adjustment, also known as a break fee, is charged when you end a fixed loan contract. Learn how banks calculate these fees.
Important information about this website
Finder makes money from featured partners, but editorial opinions are our own.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
The information provided by Frankie is general in nature and has been prepared without considering your objectives, financial situation or needs. Frankie may make mistakes so it's important that you review the information before deciding. By messaging Frankie, you agree to our Terms and have read our Privacy Policy.
Are there any 10 year fixed interest rates for an investor prefer interest only but i believe this is now not available must be p&i
Hi John,
Thanks for your question.
We currently don’t feature a list of lenders that offer 10-year fixed interest home loans for investment.
Alternatively, you may consider fixed-rate home loans. You can use our “advanced search” filter on the page to customize the listed lenders. The maximum term for a fixed-rate investment home loan that I can find on the page is 2 years.
If you need assistance in finding a suitable home loan option, you may also get in touch with a mortgage broker.
Cheers,
Anndy