Compare 3 Year Fixed Rate Home Loans from 2.69%

How to find a three year fixed rate home loan that suits you

Last updated:

Fixing a home loan for three years means you’ll be able to rest easy with the knowledge that your home loan rates and repayments will not creep up during the three year term.

No matter what external economic factors are occurring or what happens with the RBA’s monthly interest rate decision, a three year fixed rate mortgage won’t give you any repayment surprises.

As with any financial product, there are some drawbacks to a fixed home loan, including lack of flexibility and early repayment fees or break costs if you repay your loan before the fixed period ends.

Compare 3 year fixed rate home loans

Rates last updated November 18th, 2019
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
2.69%
3.19%
$395
$0 p.a.
80%
A competitive fixed interest rate product with no ongoing bank fees.
2.89%
3.29%
$0
$10 monthly ($120 p.a.)
80%
A competitive fixed rate mortgage available with a 10% deposit. Earn Velocity Frequent Flyer Points at settlement, monthly and every three years, plus extra bonus points for a limited time.
2.84%
3.37%
$449
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. 3 years fixed interest terms and free access to redraw facility online.
2.89%
3.96%
$0
$395 p.a.
90%
A two year fixed rate home loan with no application fees.
2.84%
3.22%
$395
$0 p.a.
80%
A competitive 3 year fixed rate with no ongoing bank fees.
3.49%
3.96%
$449
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. A 3 years fixed rate investor which allows extra repayments to be made.
2.98%
4.35%
$0
$395 p.a.
90%
Pay no application fee and fix your interest for 3 years with this ANZ package home loan.
2.94%
3.77%
$0
$395 p.a.
95%
2.99%
3.62%
$395
$0 p.a.
80%
Pay no ongoing fees on this investment loan fixed for 3 years.
2.94%
3.77%
$0
$395 p.a.
95%
Borrow up to 95% LVR (subject to approval) and fix your interest repayments for the next 3 years.
2.99%
3.23%
$0
$0 p.a.
80%
Lock in a 3 year fixed rate with no upfront or ongoing fees.
2.99%
4.14%
$595
$0 p.a.
95%
A low 3-year fixed rate with the option to split your loan for free.
2.99%
4.37%
$0
$395 p.a.
95%
Lock in a discounted rate for 3 years and have the option for interest only repayments. $2,000 cashback offer for eligible refinancers.
2.84%
3.59%
$395
$0 p.a.
80%
Pay no ongoing fees on this investment loan fixed for 3 years.
3.14%
4.51%
$600
$8 monthly ($96 p.a.)
95%
A fixed rate home loan offer from Commonwealth Bank.

Compare up to 4 providers

Aussie Home Loans Logo

Start your home loan application with expert help from Aussie.

By submitting this form, you agree to the Finder Privacy and Cookies Policy and Terms of Use

Applications are subject to approval. Conditions, fees and charges apply. Please note that you need to be an Australian citizen or permanent resident to apply.

Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2019 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

By submitting this form, you agree to the Aussie privacy policy.

An Aussie mortgage broker can find the right home loan for you.

  • FREE Suburb and Property Report with every appointment.
  • Access 3,000+ loans from over 20 lenders.
  • Get expert help with your loan application, including paperwork and eligibility.

Aussie Home Loans Lender Logos

The Adviser’s number 1 placed mortgage broker 7 years running (2013-2019)

What's a three year fixed rate mortgage?
fixed interest rates

As the name implies, this is a home loan which has a rate fixed for three years. Most banks and lenders across Australia will offer a three year fixed rate home loan. This is because it’s a great mix of security and length: three years is long enough to reap the benefits of a competitive rate, but short enough to give you the flexibility to change loans if you find that a fixed rate isn’t for you.

Once the three year period ends, two things can happen. Firstly, your loan could revert to the standard variable rate offered by your lender unless you choose otherwise, or secondly, your lender may approach you to fix an interest rate for another term. In most cases your lender will notify you when your fixed period is close to ending so you can make a decision. If they don’t, ensure you set a calendar reminder well before the fixed rate ends so you can decide on what you’re going to do.

How does a three year fixed rate mortgage work?

Each month, the RBA sets a ‘cash rate target’. This, as well as other economic factors, can have a bearing on what your lender decides to do with their home loan rates.

If the rates go down, those with variable rate loans could see their repayments go down too; however, if rates go up, variable rate borrowers could be paying more.

A fixed rate home loan protects borrowers against rising rates. You lock in a rate with your lender, and then for the duration of that term your rate stays the same.

Unfortunately a side effect of this is that a fixed rate home loan is less flexible and has extra fees compared to its variable rate cousin.

Fixed rate home loans can come with expensive break fees if you decide to leave the loan early.

They’ll also usually be missing features like 100% offset accounts. If they allow you to make additional repayments these will usually be capped off at somewhere between $10,000 - $30,000 a year, rather than unlimited like most variable rate home loans.

What types of three-year fixed rate home loans are available?

Just like regular variable rate loans, fixed rate home loans come in a range of different types, with these types aimed at different borrowers. It’s important to note too, that three year fixed rate home loans also come in low doc variants to suit those who are self employed, as well as bad credit variants. Keep in mind that these two types of fixed rate home loans might come with higher fees or rates, so ensure you carry out a comparison before applying.

No frills home loan

These are also known as basic home loans, and offer minimal features, meaning you may not be able to enjoy an offset account, redraw facility or extensive access options. Because of this, the lender is able to offer lower rates, and in some cases, lower fees.

Package home loan

Package home loans involve you moving all of your banking over to your lender. This means your credit cards, insurance, savings accounts and transaction accounts. In return for doing this you usually receive fee waivers on your home loan and credit card, discounts off your premium and bonus interest on your savings accounts. You also generally receive a discounted fixed rate. One of the negatives of this type of loan is that you'll usually have to pay an annual fee.

Full-featured home loan

This type of loan sits between no frills and package home loans. It's usually offered with a range of features such as offset accounts and the ability to make additional repayments. It also comes with a range of fees such as application, settlement, legal and valuation fees. Keep in mind, though, that many fixed rate home loans lack these features.

How to compare three year fixed rate home loans

A three year fixed rate home loan can be compared using the same factors as a regular home loan, but there are a few additional points to consider.
3 year fixed rate home loans

  • Rate - The interest rate isn’t always the most important indication of whether or not a home loan is the best choice for you, but it will have a large bearing on how expensive your repayments will be. Also, keep in mind that the advertised interest rate will not take fees into account, so take a look at the comparison rate too.
  • Ability to make additional repayments - This won’t be important for all borrowers, but keep in mind that not all fixed rate home loans will allow you to make additional repayments. The ones that do may come with an annual limit, so if you think you’ll be making additional repayments during the year, ensure that your loan will allow you to.
  • Fees - Compare the establishment, valuation, legal and other upfront costs when comparing three year fixed rate home loans. If the loan you’re interested in applying for is a package home loan these are generally waived and an annual fee is charged, so it’s worth looking into this.
  • Other features - These may be important depending on what you plan to do with your home loan. These include interest-only repayment options, and the maximum length of the interest-only period; offset accounts and whether they’re 100% or partial offset accounts; and what repayment options the lender will give you.

Watch: Should you go with a fixed or variable rate?

Pros and cons of a three-year fixed rate home loan

Pros

  • Consistent repayments- With a three-year fixed rate mortgage, you can benefit from the security of having consistent repayments, which means you don't have to worry about interest rate rises.
  • Additional repayments - Many fixed rate home loans today still allow you to make extra payments, although these may be limited to amounts between $10,000 - $30,000 a year.
  • Loan term- Even if you decide that fixed rate home loans aren’t for you, or rates are cut significantly, in three years you’ll be able to change your rate to a variable rate, or a different fixed rate option which means you aren't locked in for an extended period of time.

Cons

  • Interest rate drop - If lenders start dropping interest rates, your rate will stay the same, meaning you won’t be able to benefit from making lower repayments.
  • Discharge fees - Unlike other home loans in Australia, fixed rate home loans still charge discharge fees. These can be quite expensive depending on a number of factors.

Frequently asked questions about home loans fixed for three years

Was this content helpful to you? No  Yes

Home Loan Offers

Important Information*
Logo for UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 2.84% p.a. and a 2.84% p.a. comparison rate.

Logo for Athena Variable Home Loan - Refinance (Owner Occupier, P&I)
Athena Variable Home Loan - Refinance (Owner Occupier, P&I)

Owner occupiers looking to refinance can get one of the lowest rates in the market with this variable rate mortgage. $0 application fee and $0 ongoing fees. Refinancers only.

Logo for Virgin Reward Me Fixed Rate Home Loan - 2 Year $300k+ Special offer (Owner Occupier, P&I)
Virgin Reward Me Fixed Rate Home Loan - 2 Year $300k+ Special offer (Owner Occupier, P&I)

Buy your home and lock in a low rate for the first two years. Available with a 10% deposit. Earn Velocity Frequent Flyer Points at settlement, monthly and every three years, plus extra bonus points for a limited time.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

6 Responses

  1. Default Gravatar
    GregJuly 8, 2015

    How is your comparison rate calculated?

    • Default Gravatar
      JodieJuly 8, 2015

      Hi Greg,

      Thank you for your comment on finder.com.au, a financial comparison website.

      All comparison rates are calculated by each individual financial institution and they each may have different ways of calculating them. Generally they are calculated with upfront and ongoing fees using the example of $150K over 25 years.

      Read our page on the importance of comparison rates when comparing home loans.

      For further information on a particular rate you will need to contact the lender directly.

      Regards
      Jodie

    • Default Gravatar
      GregJuly 8, 2015

      Thanks, however, if there is no standard method for all lenders to calculate comparison rates, and if as you state they all use different methods then the whole intent of comparison rates is lost??

    • Default Gravatar
      JodieJuly 8, 2015

      Hi Greg,

      Lenders are the people who know how exactly each they work out the comparison rate for any one product as there are multiple factors that are not static across all borrowing needs, lenders and products.

      In general they are calculated with upfront and ongoing fees using the example of $150K over 25 years (or similar), but if you would like further information about a particular comparison rate I would suggest contacting the lender advertising it.

      As mentioned on our Australian Home Loan Comparison Rates page comparison rates were introduced as a way to make lenders accountable for advertising the actual cost of a loan rather than luring borrowers with a low-interest rate then having possible higher fees or charges attached.

      Regards
      Jodie

  2. Default Gravatar
    anneNovember 2, 2013

    which banks the lowest fix 3 years home loan

    • Avatarfinder Customer Care
      MarcNovember 4, 2013Staff

      Hello Anne,
      thanks for the question.

      Out of the lenders we compare you can find the lowest three year fixed rate by clicking the ‘interest rate p.a.’ sorter in the table above so it sorts the smallest rates first. We try to include as many loans as we can, but do not compare every product, so keep this in mind.

      Remember that the lowest rate isn’t always the best loan. Take into account features such as the ability to make additional repayments, offset accounts, redraw facilities and more.

      I hope this helps,
      Marc.

Ask a question
Go to site