Compare 3 Year Fixed Rate Home Loans from 3.74%

Rates and fees last updated on

3 Year Fixed RateHow to find a three year fixed rate home loan that suits you

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.

3 Years Fixed Rate Home Loan Offer

Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier Special Rate, P&I)

3.79 % p.a.

fixed rate

4.75 % p.a.

comparison rate

3 Years Fixed Rate Home Loan Offer

The Newcastle Permanent Building Society Fixed Rate 3 Years Fixed Rate Home Loan offers a low fixed interest rate with no application fee and ongoing fee.

  • Interest rate of 3.79% p.a.
  • Comparison rate of 4.75% p.a.
  • Application fee of $0
  • Maximum LVR: 95%
  • Minimum borrowing: $10,000
  • Max borrowing: $10,000,000
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Compare fixed rate home loans in the table below

3 year fixed rate home loans

$
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier Special Rate, P&I)
A limited time fixed rate home loan with extra repayment abilities. Conditions apply.
3.79% 4.75% $0 $0 p.a. 95% Go to site More info
3.79% 4.07% $500 $0 p.a. 95% Go to site More info
Community First Fixed Home Loan - 3 Years Fixed Owner Occupier special offer (New Loans only)
A limited time fixed rate special with no monthly or annual fees plus a 100% offset account.
3.89% 4.97% $600 $0 p.a. 95% Go to site More info
Tic:Toc Live in Loan Fixed Rate - 3 Years (Owner Occupier)
A fixed rate loan with free redraws, few ongoing fees. Apply online with a fast approval process.
4.32% 3.85% $0 $0 p.a. 80% Go to site More info
NAB Choice Package Home Loan - 3 Year Fixed (Owner Occupier P&I)
Receive discounts on interest rates with the Choice Package. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.94% 4.84% $0 $395 p.a. 95% Go to site More info
ME Flexible Home Loan Fixed - 3 Year Fixed Rate (Owner Occupier, P&I)
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
3.99% 4.77% $0 $0 p.a. 95% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Years Fixed (Standard Rate, P&I)
Split your loan for free with one of the lowest fixed home loan rates.
3.99% 4.80% $0 $0 p.a. 95% Go to site More info
UBank UHomeLoan - 3 Year Fixed Rate (Owner Occupier)
A competitive refinance offer on a 3 year fixed rate.
3.99% 4.08% $395 $0 p.a. 80% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 3 Year Fixed LVR ≤85% ($150K+ Owner Occupier)
Enjoy discounts on insurance products and other accounts with Greater with this package loan. NSW, QLD and ACT residents only.
3.74% 4.42% $0 $375 p.a. 85% Go to site More info
NAB Tailored Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier P&I)
Flexible fixed rate home loan which will allow you to take break from repayments if you're ahead of scheduled repayments.
4.04% 5.05% $600 $8 monthly ($96 p.a.) 95% Go to site More info
Homeloans Ultra - 3 Year Fixed Rate
A 3 year fixed rate offer from Homeloans.
4.94% 5.00% $0 $0 p.a. 95% Enquire now More info
Auswide Bank Fixed Home Loan Plus with Freedom Package - 3 Year Fixed $150k to $249k LVR <= 90% (Owner Occupier)
Lock in rate for 3 years and enjoy a discounted home loan interest rates on your loan of $150,000 -$249,000.
4.09% 4.98% $0 $395 p.a. 90% Enquire now More info
Commonwealth Bank Fixed Rate Home - 3 Year Fixed Rate (Owner Occupier, P&I)
A fixed rate home loan offer from Commonwealth Bank.
4.14% 5.07% $600 $8 monthly ($96 p.a.) 95% Enquire now More info
Bankwest Fixed Rate Home Loan - 3 Year Fixed Rate (Owner Occupiers)
Fix your home loan for 3 years and be able to work out your budget knowing your loan repayments.
4.38% 5.21% $295 $12 monthly ($144 p.a.) 90% More info
Citibank Mortgage Plus Fixed Rate - 3 Year Fixed Rate (Owner Occupier, P&I)
A competitive fixed interest rate for three years.
4.29% 4.63% $0 $350 p.a. 80% Enquire now More info
Bank of Queensland Fixed Rate Home Loan - 3 Year Fixed Rate (Owner Occupier, P&I)
Principal and Interest or Interest only terms, lock in a 3 year fixed rate.
4.39% 5.42% $300 $10 monthly ($120 p.a.) 95% Enquire now More info
St.George Fixed Rate Home Loan - 3 Year Fixed Rate (Owner Occupier, P&I)
Redraw facility and interest-only repayments available.
4.09% 5.08% $600 $10 monthly ($120 p.a.) 95% Enquire now More info
Westpac Fixed Options Home Loan - 3 Years, P&I
Ability to make extra repayments during the fixed term and access the money through redraw.
4.19% 5.09% $600 $8 monthly ($96 p.a.) 95% Enquire now More info
Heritage Bank Fixed Rate Home Loan - 3 Year Fixed Rate (Owner Occupier) New Customers Only
Enjoy a fixed rate for three years along with additional features.
4.09% 5.00% $600 $8 monthly ($96 p.a.) 95% More info
BankSA Advantage Package Home Loan - 3 Year Fixed (Owner Occupier P&I)
A 3 years fixed rate that allows borrowers to borrow from $150000 up to $10000000.
3.94% 4.90% $0 $395 p.a. 95% Enquire now More info
ANZ Breakfree Package Home Loan - 3 Year Fixed (Owner Occupier, P&I)
A competitive three year fixed rate with discounts on fees.
3.99% 4.94% $0 $395 p.a. 95% Enquire now More info
Gateway Credit Union Premium Package Home Loan - 3 Years Fixed (Owner Occupier P&I)
A competitive and flexible package product that can suit your needs.
4.05% 4.74% $0 $299 p.a. 95% Enquire now More info
ING Fixed Rate Home Loan - 3 Year Fixed Rate (Owner Occupier with Orange Advantage)
A package home loan with competitive 3 year fixed rate.
3.79% 4.48% $0 $299 p.a. 95% Enquire now More info

Fixed rate home loans for August 2017

Home Loan Interest Rate (p.a.) Comparison Rate (p.a.)
Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier Special Rate, P&I) 3.79% 4.75%
Easy Street Fixed Home Loan - 3 Years Fixed Owner Occupier special offer (New Loans only), P&I 3.79% 4.07%
Community First Fixed Home Loan - 3 Years Fixed Owner Occupier special offer (New Loans only) 3.89% 4.97%
Tic:Toc Live in Loan Fixed Rate - 3 Years (Owner Occupier) 4.32% 3.85%

1 year fixed rate home loans

Rates last updated August 17th, 2017.

Westpac Fixed Options Home Loan Premier Advantage Package - 1 Year, P&I

Comparative rate increases by 0.08%

October 10th, 2016

UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier)

Comparison rate increases by 0.10%

December 2nd, 2016

NAB Tailored Fixed Rate Home Loan - 1 Year Fixed (Owner Occupier P&I)

Comparative rate decreases by 0.01% | Interest rate decreases by 0.10%

January 16th, 2017

View latest updates

Richard Whitten Richard
$
Loan purpose
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Loan type
Your filter criteria do not match any product
Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.49% 4.47% $0 $375 p.a. 85% Go to site 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
Newcastle Permanent Building Society Fixed Rate Home Loan - 1 Year Fixed (Standard Rate, P&I)
Investors can take advantage of a short term fixed rate with no application or ongoing fees.
3.94% 4.98% $0 $0 p.a. 95% Go to site More info
NAB Tailored Fixed Rate Home Loan - 1 Year Fixed (Owner Occupier P&I)
Enjoy a low rate fixed home loan with the ability to borrow up to 95% of the property value. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.99% 5.25% $600 $8 monthly ($96 p.a.) 95% Go to site More info
Commonwealth Bank Fixed Rate Home - 1 Year Fixed Rate (Owner Occupier, P&I)
A 1 year fixed rate home loan from Commonwealth Bank.
4.14% 5.26% $600 $8 monthly ($96 p.a.) 95% Enquire now More info
Citibank Fixed Rate Loan - 1 Year Fixed Rate (Owner Occupier, P&I)
A competitive fixed interest rate with an international bank.
4.09% 5.65% $399 $8 monthly ($96 p.a.) 90% Enquire now More info
St.George Fixed Rate Home Loan - 1 Year Fixed Rate (Owner Occupier, P&I)
Enjoy a 1 year fixed rate with great features such as redraw, rate lock, a partial interest offset facility, repayment pause and more!
4.14% 5.28% $600 $10 monthly ($120 p.a.) 95% Enquire now More info
Westpac Fixed Options Home Loan Premier Advantage Package - 1 Year, P&I
Secure a low fixed rate offer plus low ongoing fee.
3.99% 4.96% $0 $395 p.a. 95% Enquire now More info
ANZ Breakfree Package Home Loan - 1 Year Fixed (Owner Occupier, P&I)
A competitive package home loan with 100% offset account.
3.99% 5.07% $0 $395 p.a. 95% Enquire now More info
Westpac Fixed Rate Investment Property Loan - 1 Year Fixed Rate, P&I
A competitive fixed rate home loan with extra repayments available.
4.39% 5.79% $600 $8 monthly ($96 p.a.) 95% Enquire now More info
BankSA Super Fund Home Loan - 1 Year Fixed, P&I
Borrow from $100000 up to $2000000.
5.99% 6.72% $1,500 $12 monthly ($144 p.a.) 70% Enquire now More info
St.George Fixed Super Fund Home Loan - 1 Year Fixed Rate (Investors, IO)
Lock in a competitive rate for 1 year and save on costs related to your SMSF investment.
6.44% 7.25% $1,500 $12 monthly ($144 p.a.) 70% Enquire now More info

2 year fixed rate home loans

Rates last updated August 17th, 2017.

View latest updates

Richard Whitten Richard
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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier Special Rate, P&I)
Owner-occupiers can lock in a competitive rate with no ongoing fees. Conditions apply.
3.74% 4.85% $0 $0 p.a. 95% Go to site More info
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I) First Home Buyer Special
A special rate for first home buyers buying residential property and borrowing over $150K. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.69% 4.86% $0 $395 p.a. 90% Go to site More info
Select Encompass Credit Union Special Offer 2 Year Fixed Rate Home Loan
A fixed rate loan with limited fees and a competitive interest rate.
3.74% 4.15% $0 $0 p.a. 95% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 2 Year Fixed LVR ≤85% ($150K+ Owner Occupier)
Discount off an already competitive 2 year fixed rate for loans over $150k. NSW,QLD and ACT residents only.
3.69% 4.45% $0 $375 p.a. 85% Go to site More info
ME Flexible Home Loan Fixed - 2 Year Fixed Rate (Owner Occupier, P&I)
No application or ongoing fees and a competitive 2 year fixed rate.
3.74% 4.81% $0 $0 p.a. 95% Go to site More info
Aussie Select Basic Fixed Rate Home Loan - 2 Year Fixed LVR up to 80% (Owner Occupier)
Fix a low rate home loan for 2 years with Aussie Home Loans.
3.99% 3.84% $0 $0 p.a. 80% Enquire now More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Standard Rate, P&I)
Enjoy a low interest rate and borrow up to 95% (with LMI) of your property's value.
3.94% 4.88% $0 $0 p.a. 95% Go to site More info
NAB Tailored Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier P&I)
A fixed rate home loan with additional repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.98% 5.13% $600 $8 monthly ($96 p.a.) 95% Go to site More info
Citibank Fixed Rate Loan - 2 Year Fixed Rate (Owner Occupier, P&I)
A 2 year fixed home loan with a low interest rate.
4.09% 5.51% $399 $8 monthly ($96 p.a.) 90% Enquire now More info
ANZ Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier, P&I)
Flexible repayment options to help you save.
4.03% 5.08% $600 $10 monthly ($120 p.a.) 95% Enquire now More info
Citibank Mortgage Plus Fixed Rate - 2 Year Fixed Rate (Owner Occupier, P&I)
A two year fixed rate with no application fee and a high maximum LVR.
4.09% 4.59% $0 $350 p.a. 90% Enquire now More info
St.George Fixed Rate Advantage Package -  2 Year Fixed Rate (Owner Occupier, P&I)
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cashback available for refinancers. Conditions apply.
3.99% 4.98% $0 $395 p.a. 95% Enquire now More info
Westpac Fixed Options Home Loan Premier Advantage Package - 2 Years, P&I
Lock in a discounted fixed rate with a low service fee.
3.99% 4.90% $0 $395 p.a. 95% Enquire now More info
Commonwealth Bank Fixed Rate Home - 2 Year Fixed Rate (Owner Occupier, P&I)
Peace of mind for two years with a fixed interest rate.
4.14% 5.16% $600 $8 monthly ($96 p.a.) 95% Enquire now More info
BankSA Super Fund Home Loan - 2 Year Fixed, P&I
A rate locked in for 2 years on your SMSF property.
5.99% 6.67% $1,500 $12 monthly ($144 p.a.) 70% Enquire now More info
Westpac Fixed Options Home Loan - 2 Years, P&I
A fixed rate with redraw facility and portability options.
4.19% 5.18% $600 $8 monthly ($96 p.a.) 95% Enquire now More info
4.59% 5.57% $200 $0 p.a. 0% Enquire now More info

5 year fixed rate home loans

Rates last updated August 17th, 2017.

Bankwest Fixed Rate Home Loan - 5 Year Fixed Rate (Owner Occupiers)

Comparison rate increases by 0.17% | Interest rate increases by 0.41%

December 7th, 2016

Greater Bank Ultimate Home Loan - Discounted 5 Year Fixed LVR ≤85% ($150K+ Owner Occupier)

Interest rate increases by 0.20%

January 16th, 2017

Greater Bank Great Rate Home Loan - Discounted 5 Year Fixed LVR ≤85% ($150K+ Owner Occupier)

Interest rate now 4.39%

January 16th, 2017

View latest updates

Richard Whitten Richard
$
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
Newcastle Permanent Building Society Fixed Rate Home Loan - 5 Year Fixed (Owner Occupier Special Rate, P&I)
A 5 year fixed home loan with a low interest rate for owner occupiers.
4.24% 4.75% $0 $0 p.a. 95% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 5 Year Fixed LVR ≤85% ($150K+ Owner Occupier)
Keep your loan below 85% LVR with a loan amount above $150k and this discounted 5 year fixed rate. NSW, QLD and ACT residents only.
3.99% 4.46% $0 $375 p.a. 85% Go to site More info
NAB Choice Package Home Loan - 5 Year Fixed (Owner Occupier P&I)
A competitive loan with flexible features. 350K NAB Rewards Points offer available. Terms and conditions apply.
4.59% 5.01% $0 $395 p.a. 95% Go to site More info
Greater Bank Great Rate Home Loan - Discounted 5 Year Fixed LVR ≤85% ($150K+ Owner Occupier)
A low fee fixed rate home loan with a redraw facility. NSW, QLD and ACT residents only.
4.09% 4.25% $0 $0 p.a. 85% Go to site More info
ANZ Breakfree Package Home Loan - 5 Year Fixed (Owner Occupier, P&I)
A discounted rate and fee waivers are available with this loan.
4.49% 5.03% $0 $395 p.a. 95% Enquire now More info
4.69% 5.14% $600 $8 monthly ($96 p.a.) 95% Go to site More info
ANZ Fixed Rate Home Loan - 5 Year Fixed (Owner Occupier, P&I)
Borrow up to 80% of your home loan value.
4.64% 5.07% $600 $10 monthly ($120 p.a.) 95% Enquire now More info
4.54% 5.08% $600 $8 monthly ($96 p.a.) 95% Enquire now More info
St.George Fixed Rate Home Loan - 5 Year Fixed Rate (Owner Occupier, P&I)
Enjoy a 5 years fixed rate with great features such as rate lock, a partial interest offset facility, repayment pause and more!
4.44% 5.06% $600 $10 monthly ($120 p.a.) 95% Enquire now More info
Citibank Fixed Rate Loan - 5 Year Fixed Rate (Owner Occupier, P&I)
A competitive fixed interest rate, borrow from a mininum of $50K to $4M.
4.59% 5.35% $399 $8 monthly ($96 p.a.) 90% Enquire now More info
BankVic Premium Package Fixed Home Loan - 5 Years
Have the ease of budgeting with BankVic Premium Package Fixed Home Loan - 5 Years.
4.44% 4.51% $0 $375 p.a. 95% More info
Bankwest Fixed Rate Home Loan - 5 Year Fixed Rate (Owner Occupiers)
Lock in your rate for 5 years with the ability to make additional repayments up to $10,000 per year.
4.69% 5.20% $295 $12 monthly ($144 p.a.) 90% More info
Westpac Fixed Options Home Loan Premier Advantage Package - 5 Years, P&I
A competitive interest rate with a host of other discounts on Westpac products.
4.19% 4.83% $0 $395 p.a. 95% Enquire now More info
Austral Mortgage AdvantagePlus Fixed - 5 Years
Enjoy a 5 years fixed rate home loan with $0 ongoing fee.
4.93% 5.07% $330 $0 p.a. 95% More info
St.George Fixed Super Fund Home Loan - 5 Year Fixed Rate (Investors, IO)
A super fund home loan with low monthly fee, partial offset account and borrow up to 70% LVR.
6.84% 7.22% $1,500 $12 monthly ($144 p.a.) 70% Enquire now More info
Heritage Bank Fixed Rate Home Loan - 5 Year Fixed Rate (Owner Occupier) New Customers Only
A fixed rate home loan which allows extra repayments to be made.
4.49% 5.01% $600 $8 monthly ($96 p.a.) 95% Enquire now More info
AMP SuperEdge Loan - 5 Year Fixed Rate, P&I
Pay no application fee with AMP SuperEdge Fixed rate home loan.
5.89% 6.39% $0 $10 monthly ($120 p.a.) 50% Enquire now More info
Commonwealth Bank Wealth Package Fixed Home Loan - 5 Year Fixed (Owner Occupier) P&I
A competitive interest rate with a range of repayment choices.
4.39% 4.99% $0 $395 p.a. 95% Enquire now More info

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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.

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

Some fixed home loans also give borrowers the chance to pay their interest for the year in advance. This has the benefit of allowing investors to claim some of this interest back as a tax deduction. Ensure you seek the services of an accountant before employing this strategy.

This question depends on you and your lifestyle. It also depends on what you plan to do with your home loan in the future. You can read more about this in our guide.

This question is best answered by an expert broker or economist. You can read the latest forecasts by Australia's foremost economists here.

Yes, some fixed rate loans today allow you to add a 100% offset account to it to help you save in interest.

With a 100% offset account, the whole amount in the offset account offsets the interest on your home loan. For example, $10,000 in your offset account on a home loan of $400,000 will see your interest calculated on only $390,000. A partial offset account won't use the full amount in your offset account. In some cases, it may use 50% of the funds in your account, meaning an offset account with $10,000 on a home loan of $400,000 will see the interest calculated on a loan amount of $395,000 rather than the $390,000 given in the first example.

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This page was last modified on 27 July 2017 at 11:41am.

Bank Australia Basic Home Loan - Variable (Owner Occupier)

A competitive variable rate that allows borrowers to borrow a minimum of $100,000 with a $0 ongoing fee.

NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I)

A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)

Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.

IMB Budget Home Loan - LVR <=90% (Owner Occupier)

Get a competitive rate without features you may not use.

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6 Responses

  1. Default Gravatar
    GregJuly 8, 2015

    How is your comparison rate calculated?

    • Staff
      JodieJuly 8, 2015Staff

      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??

    • Staff
      JodieJuly 8, 2015Staff

      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

    • Staff
      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.

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