Compare 2 Year Fixed Rate Home Loans

Rates and Fees verified correct on July 29th, 2016

Future-proof your home loan repayments for two years.

Enjoy the stability of knowing your repayments which won’t change for two years. This provides you with the stability of a normal fixed rate mortgage but doesn’t pin you down for such a long period of time that you get locked into an agreement with no way of taking advantage of favourable market fluctuations.

2 year fixed rate home loans are offered by most banking institutions, credit unions, and building societies in Australia.

2 year fixed rate home loans

Rates last updated July 29th, 2016.

ClickLoans The Online Home Loan Fixed (Low Deposit) - 2 Year Fixed

Interest rate dropped by 0.10% p.a.

February 23rd, 2016

Greater Bank Ultimate Home Loan - Discounted 2 Year Fixed ($150K+ Owner Occupier)

Interest rate increased by 0.10%

February 29th, 2016

Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Owner Occupier)

Interest rate increased by 0.10%

February 29th, 2016

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Jodie Humphries Jodie
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Product nameInterest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
Greater Bank Ultimate Home Loan - Discounted 2 Year Fixed ($150K+ Owner Occupier)
Discount off an already competitive 2 year fixed rate for loans over $150k. NSW,QLD and ACT residents only.
3.79% 4.49% $0 $375 p.a. 85% Go to site More info
loans.com.au Fixed - 2 Year Fixed (Owner Occupier)
Another low interest rate offer from loans.com.au. No application fee to pay.
3.99% 3.93% $0 $0 p.a. 90% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Owner Occupier)
Enjoy a low interest rate and borrow up to 95% (with LMI) of your home value.
3.74% 4.84% $0 $0 p.a. 95% Go to site More info
Switzer Fixed Rate Home Loans - 2 Years Fixed Rate
A competitive 2 year fixed rate with your very own lending service manager.
3.97% 3.99% $0 $0 p.a. 80% Go to site More info
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
A fixed rate package loan with flexible repayments options. 250,000 Velocity Frequent Flyer point offer, conditions apply.
3.75% 4.95% $0 $395 p.a. 95% Go to site More info
ClickLoans The Online Home Loan Fixed (Low Deposit) - 2 Year Fixed
Fix in a competitive rate for two years, with deposits of as little as 5% accepted.
4.19% 4.34% $363 $0 p.a. 95% Go to site More info
ME Bank Flexible Home Loan Fixed - 2 Year Fixed Rate (Owner Occupier)
No application or ongoing fees and a competitive 2 year fixed rate.
3.99% 4.86% $0 $0 p.a. 95% Go to site More info
loans.com.au Fixed - 2 Year Fixed (Investor)
Fix in a 2 year rate and choose to split the loan if you wish for your investment.
4.29% 4.34% $0 $0 p.a. 90% Go to site More info
NAB Tailored Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)
A fixed rate home loan with the ability to lock the interest rate at the time of loan approval for up to 3 months. 250,000 Velocity Frequent Flyer point offer, conditions apply.
3.85% 5.16% $0 $8 monthly ($96 p.a.) 95% Go to site More info
3.99% 4.42% $0 $395 p.a. 90% Go to site More info
Westpac Fixed Options Home Loan - 2 Years
A fixed rate with redraw facility and portability options.
4.39% 5.37% $600 $8 monthly ($96 p.a.) 95% More info
4.19% 5.39% $0 $395 p.a. 95% More info
Westpac Fixed Options Home Loan Premier Advantage Package - 2 Years
A low interest rate home loan and competitive two year fixed rate.
4.19% 5.01% $0 $395 p.a. 95% More info

1 year fixed rate home loans

Rates last updated July 29th, 2016.

loans.com.au Fixed - 1 Year Fixed (Investor)

Interest rate increased by 0.17%

November 24th, 2015

loans.com.au Fixed - 1 Year Fixed (Owner Occupier)

Interest rate increased by 0.17%

December 18th, 2015

UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier)

Interest rate dropped by 0.19% p.a.

February 18th, 2016

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Jodie Humphries Jodie
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Product nameInterest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed ($150K+ Owner Occupier)
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.69% 4.51% $0 $375 p.a. 85% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 1 Year Fixed (Investor)
A low interest rate home loan with a low ongoing fee.
3.69% 4.96% $0 $0 p.a. 80% More info
UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier)
Refinance with UBanks low 1 year fixed rate offer. No application fee.
3.69% 4.15% $395 $0 p.a. 80% Go to site More info
loans.com.au Fixed - 1 Year Fixed (Owner Occupier)
Lock in a short interest loan term with a low interest rate.
3.99% 3.92% $0 $0 p.a. 90% Go to site More info
NAB Choice Package Home Loan - 1 Year Fixed (Owner Occupier)
A low interest rate home loan with flexible repayment options. 250,000 Velocity Frequent Flyer point offer, conditions apply.
3.99% 5.07% $0 $395 p.a. 95% Go to site More info
ClickLoans The Online Home Loan Fixed (Low Deposit)  - 1 Year Fixed
A fixed rate home loan with an offset account and redraw facility.
4.44% 4.51% $363 $0 p.a. 95% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 1 Year Fixed (Owner Occupier)
Get a short term fixed rate for that investment property with no application or ongoing fees.
3.69% 4.96% $0 $0 p.a. 95% Go to site More info
Bankwest Complete Home Loan Package Fixed - 1 Year Fixed Rate LVR <90% (Owner Occupier)
Fix your home loan for just 1 year with this competitive rate.
4.21% 4.45% $0 $395 p.a. 90% Go to site More info
loans.com.au Fixed - 1 Year Fixed (Investor)
Lock in a short term interest rate for your investment property.
4.29% 4.34% $0 $0 p.a. 90% Go to site More info
IMB Fixed Rate Home Loan - 1 Year Fixed (LVR < 90% Owner Occupier)
Lock in a rate for one year and get the ability to make additional repayments for 12 months without penalty.
4.29% 4.84% $445 $6 monthly ($72 p.a.) 90% Go to site More info
NAB Tailored Fixed Rate Home Loan - 1 Year Fixed (Owner Occupier)
Enjoy a low rate fixed home loan with the ability to borrow up to 95% of the property value. 250,000 Velocity Frequent Flyer point offer, conditions apply.
4.09% 5.32% $0 $8 monthly ($96 p.a.) 95% Go to site More info
4.54% 5.52% $600 $10 monthly ($120 p.a.) 95% More info
Westpac Fixed Options Home Loan Premier Advantage Package - 1 Year
Secure a low fixed rate offer plus low ongoing fee.
4.39% 5.07% $0 $395 p.a. 95% More info

3 year fixed rate home loans

Rates last updated July 29th, 2016.

View latest updates

Jodie Humphries Jodie
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Product nameInterest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
loans.com.au 3 Years Fixed Special Offer (LVR <80% Owner Occupier)
Lock in a rate for 3 years and keep your LVR under 80% to get access to this special offer.
3.67% 3.88% $0 $0 p.a. 80% Go to site More info
UBank UHomeLoan - 3 Year Fixed Rate (Owner Occupier)
A competitive refinance offer on a 3 year fixed rate.
3.69% 4.00% $395 $0 p.a. 80% Go to site More info
HSBC Premier Fixed Rate Home Loan - 3 Years Fixed (Owner Occupier only)
Enjoy a 3 years fixed low rate with flexible repayment options.
3.69% 4.81% $300 $35 monthly ($420 p.a.) 90% Go to site More info
ME Bank Flexible Home Loan Fixed - 3 Year Fixed Rate (Owner Occupier)
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
3.79% 4.72% $0 $0 p.a. 95% Go to site More info
Bank of Queensland Fixed Rate Home Loan - 3 Year Fixed Rate Discount Rate $150k+ <80% LVR (Owner Occupier)
Special offer for new lending of $150k or more & under 80% LVR, this offer has been extended.
3.69% 4.41% $300 $10 monthly ($120 p.a.) 80% Go to site More info
loans.com.au Fixed - 3 Year Fixed (Owner Occupier)
A low rate 3 year loan with no ongoing fees or application fee from an award winning lender.
3.99% 3.93% $0 $0 p.a. 90% Go to site More info
3.89% 4.73% $0 $395 p.a. 90% Go to site More info
NAB Choice Package Home Loan - 3 Year Fixed (Owner Occupier)
Receive discounts on interest rates with the Choice Package. 250,000 Velocity Frequent Flyer point offer, conditions apply.
3.89% 4.91% $0 $395 p.a. 95% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 3 Year Fixed ($150K+ Owner Occupier)
Enjoy discounts on insurance products and other accounts with Greater with this package loan. NSW, QLD and ACT residents only.
3.89% 4.48% $0 $375 p.a. 85% Go to site More info
CUA Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier)
Pay no ongoing fees and lock in your rate for 3 years to organise your budget.
3.99% 4.64% $600 $0 p.a. 95% Go to site More info
Switzer Fixed Rate Home Loans - 3 Years Fixed Rate
Fix this competitive rate for 3 years and pay no monthly or annual fees.
4.12% 4.02% $0 $0 p.a. 80% Go to site More info
Bankwest Complete Home Loan Package Fixed - 3 Year Fixed Rate LVR <90% (Owner Occupier)
Take advantage of a low 3 year fixed rate, 40% offset account and no application fee.
3.89% 4.39% $0 $395 p.a. 90% Go to site More info
loans.com.au Fixed - 3 Year Fixed (Investor)
Investment loan that locks in a fixed rate for three years.
4.29% 4.33% $0 $0 p.a. 90% Go to site More info
IMB Fixed Rate Home Loan - 3 Year Fixed (LVR < 90% Owner Occupier)
3 years fixed interest terms and free access to redraw facility online.
3.99% 4.68% $445 $6 monthly ($72 p.a.) 90% Go to site More info
St.George Fixed Rate Home Loan - 3 Year Fixed Rate (Owner Occupier)
Redraw facility and interest-only repayments available.
4.44% 5.33% $600 $10 monthly ($120 p.a.) 95% More info
Westpac Fixed Options Home Loan - 3 Years
Ability to make extra repayments during the fixed term and access the money through redraw.
4.49% 5.31% $600 $8 monthly ($96 p.a.) 95% More info

5 year fixed rate home loans

Rates last updated July 29th, 2016.

Aussie Optimizer Fixed Rate Home Loan - 5 Year Fixed Rate (Owner Occupier) P&I

Interest rate dropped by 0.16% p.a.

February 26th, 2016

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Jodie Humphries Jodie
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Product nameInterest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
Greater Bank Great Rate Home Loan - Discounted 5 Year Fixed ($150K+ Owner Occupier)
A low fee fixed rate home loan with a redraw facility. NSW, QLD and ACT residents only.
4.19% 4.31% $0 $0 p.a. 85% Go to site More info
UBank UHomeLoan - 5 Year Fixed Rate (Owner Occupier)
An online only home loan with a great 5 year fixed rate. Available for refinance and purchases.
4.27% 4.18% $395 $0 p.a. 80% Go to site More info
Switzer Fixed Rate Home Loans - 5 Years Fixed Rate
Fix a rate for 5 years and pay no application or settlement fees.
4.77% 4.31% $0 $0 p.a. 80% Go to site More info
Bankwest Complete Home Loan Package Fixed - 5 Year Fixed Rate LVR <90% (Owner Occupier)
Get the security of knowing your repayments with this 5 year fixed rate package home loan.
4.45% 4.60% $0 $395 p.a. 90% Go to site More info
NAB Choice Package Home Loan - 5 Year Fixed (Owner Occupier)
A competitive loan with flexible features. 250,000 Velocity Frequent Flyer point offer, conditions apply.
4.59% 5.07% $0 $395 p.a. 95% Go to site More info
NAB Tailored Fixed Rate Home Loan - 5 Year Fixed (Owner Occupier)
Enjoy an interest only payment option for up to 5 years. 250,000 Velocity Frequent Flyer point offer, conditions apply.
4.69% 5.16% $0 $8 monthly ($96 p.a.) 95% Go to site More info
Aussie Select Basic Fixed Rate Home Loan - 5 Year Fixed LVR up to 80% (Owner Occupier)
A 5 year fixed home loan with a low interest rate for owner occupiers.
4.59% 4.28% $0 $0 p.a. 90% Go to site More info
Aussie Optimizer Fixed Rate Home Loan - 5 Year Fixed Rate (Owner Occupier) P&I
Borrow up to 90% and enjoy a low interest rate and no ongoing fee.
4.49% 4.40% $0 $0 p.a. 95% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 5 Years Fixed (Investor)
A long term fixed interest rate with no application or annual fees.
4.49% 4.85% $0 $0 p.a. 80% More info
4.74% 5.31% $600 $10 monthly ($120 p.a.) 95% More info
Westpac Fixed Options Home Loan Premier Advantage Package - 5 Years
A competitive interest rate with a host of other discounts on Westpac products.
4.59% 5.05% $0 $395 p.a. 95% More info

What's a two year fixed rate home loan?

Title

A home loan fixed for two years is a short-term mortgage with a fixed interest rate for the duration of the loan. It guarantees that you’ll pay the same repayment for the full two years of the loan even if the economic market changes during that time. This will allow you to budget your money wisely since you know exactly what you’ll have to pay toward the loan each billing period. Once the two years are up you can decide to select another fixed rate loan or switch to a variable rate plan if you feel that a fixed rate isn’t suited to you.

A two year fixed rate home loan is no different from a normal home loan. The difference comes in the form of the interest rate. While most home loans have variable interest rates that can fluctuate with the economy, a fixed rate loan gives you a locked-in interest rate that remains the same for the duration of the fixed term, in this case for two years. There’s also a difference in the features which typically come with a fixed rate loan. For example, fixed rate loans usually don’t allow you make additional repayments to pay off your loan faster (or they limit how much extra money you can pay during the fixed term). They usually don’t come with offset accounts either.

Types of fixed home loans available

Below are some of the types of fixed rate mortgages available for two years

Basic home loans

This type of home loan has minimal features but offers competitive rates and low fees. This is ideal for those looking for the cheapest rate without the bells and whistles of additional features.

Full featured home loans

If you're looking for added features like offset accounts, flexible repayments and the like a full featured home loan is for you. Since it has additional features this loan usually has higher fees and sometimes higher interest rates associated with it.

Package home loans

This type of home loan usually comes with an annual fee that must be paid but it also has rate discounts. This kind of loan may also come with additional discounts on other financial products from the individual lender.

Low doc loans

This home loan is ideal for people who don't have evidence of their income such as investors or self-employed individuals. If you don't have traditional paperwork documenting your income a low doc loan may be perfect for you.

Bad credit home loans

As the name states, this is a home loan that is made available to individuals who may not have the best credit history.

How to compare two year fixed mortgages

  • Interest rates. This will be one of the key factors you’ll probably look at when you’re comparing home loans. Since the interest rate is what makes up your fixed repayments you’ll want to find the one that fits your budget the best. You should also look at the comparison rate which will tell you what your repayments will be with fees factored into the total.
  • Offered features. You’ll also want to look at what additional features come with your two year fixed rate home loan. These extra features could be a redraw option, flexible repayment options, or offset accounts. Fixed rate loans usually don’t offer too many additional features so if you want them you’ll want to have a close look at what’s on offer. On the other hand, if you don’t want any additional features you should look for a loan without any since features usually cost additional fees.
  • Fees. Loans will have different fees including application fees, settlement fees, exit fees, and annual fees. In order to save money on your loan you’ll want to compare your options to find the lowest available fees.
  • Revert rates. A revert rate is the rate that your loan will revert to once your fixed term is over. If you want to stay with your loan after your fixed period ends you’ll want to make sure that the revert rate isn’t too high for your budget. Compare loans based on this rate in order to get the best deal overall.

Pros and cons of these fixed rate home loans

Pros

  • A short loan term. Since this home loan is only for two years you won’t feel locked in to your loan like you would with longer term loans. This type of short loan is ideal if you’re looking to sell your property sooner rather than later or if you just don’t like the rigid structure of the longer fixed rate home loans.
  • A guaranteed repayment amount. With a fixed rate home loan you’ll never be surprised by your repayment amount. Once you agree upon the fixed rate, you’ll pay that amount for the two years of the loan. You won’t have to worry about your rate fluctuating with the market or with your financial institution.
  • Budget friendly home loan. Since you’ll know exactly what you have to repay toward your fixed rate home loan each billing cycle you can plan a budget accordingly. This isn’t possible with variable rate loans since you never know what you’ll be paying from one bill to the next.

Cons

  • Possible lost savings. With a fixed rate home loan you’ll miss out on savings if the RBA drops the official cash rate or economic factors change during your two year fixed rate loan term. If this happens during your loan term there’s a chance that you’ll be paying more than those with a variable rate home loan.
  • High fees. Fixed rate home loans are sometimes associated with high fees. These fees may offset any savings that your fixed rate may give you.
  • Lack of extra features. These type of loans usually don’t come with additional features like additional repayments, offset accounts, or redraw options. If they do come with these features there are usually high fees or limitations put on them.

Things to consider when comparing two year fixed mortgages

thinkingBefore choosing a two year fixed rate home loan you should check the current RBA cash rate rate, and what experts think may happen to it in the short and medium term. If you see that there’s a possible rate drop in the near future you should probably choose a variable rate loan over a fixed rate one. This will save you money during your loan term since you’ll be able to take advantage of the impending rate drop. If you choose a fixed rate you’ll miss out on those savings.

Two year fixed rate home loans allow you to enjoy a short term mortgage with stable repayments for the duration of the loan. Settle into your new home without worrying about fluctuating repayments in an unstable economy.

Frequently asked questions about two year fixed rate home loans

Can I make additional repayments?

Fixed rate home loans usually put limitations on how many additional repayments you can make each year. If you plan on making additional repayments often you may want to choose another type of loan.

Are there any fees attached to the loan?

There are usually application fees, exit fees, and annual fees associated with a fixed rate loan. There may also be fees for additional features that come with the loan.

Who is this loan ideal for?

These loans are great for those who enjoy stability and budgeting their income for their bills since the fixed rate guarantees your repayments will stay the same. The loan is also great for investors who want to maximise their cash flow.

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This page was last modified on 24 May 2016 at 16:32.

loans.com.au Fast Forward Special - Owner Occupier Only

Enjoy a low interest rate, no application fee and fee-free redraws for loans between $50,000 and $500,000.

NAB Choice Package Home Loan - 3 Year Fixed (Owner Occupier)

Receive discounts on interest rates with the Choice Package. 250,000 Velocity Frequent Flyer point offer, conditions apply.

ClickLoans The Online Home Loan - Owner Occupier ≤ 70% LVR

Enjoy a competitive interest rate when you have a deposit of at least 25%.

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