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Compare 3-year fixed rate home loans

For many borrowers, fixing for 3 years strikes the right balance between a competitive rate and a decent length of time. Compare 3-year fixed rate loans from across the market.

What you need to know:

  • Use the table below to compare 3-year fixed rate loans.
  • The main benefit of a 3-year fixed rate home loan is certainty: Your repayments stay the same for the first 3 years.
  • For the last few years fixed rates were lower than variable, but they've returned to normal with variable rates generally cheaper than fixed.
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Name Interest Rate p.a. Comparison Rate p.a. Fees Monthly Payment
Principal & Interest 3Y Fixed30% min. depositOwner-occupier
Interest Rate
6.25%
Comparison Rate
6.20%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$3,082
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Principal & Interest 3Y Fixed30% min. depositInvestment
Interest Rate
6.55%
Comparison Rate
6.42%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$3,180
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Principal & Interest 3Y Fixed20% min. depositOwner-occupier
Interest Rate
6.35%
Comparison Rate
6.26%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$3,115
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Principal & Interest 3Y Fixed20% min. depositInvestment
Interest Rate
6.65%
Comparison Rate
6.53%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$3,213
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Principal & InterestInterest only 3Y Fixed5% min. depositOwner-occupier
Interest Rate
5.48%
Comparison Rate
6.24%
Fees
Application: $250
Ongoing: $0 p.a.
Monthly Payment
$2,836
Principal & Interest 3Y Fixed5% min. depositOwner-occupierOffset account
Interest Rate
5.79%
Comparison Rate
6.69%
Fees
Application: $600
Ongoing: $0 p.a.
Monthly Payment
$2,934
Principal & Interest 3Y Fixed5% min. depositOwner-occupier
Interest Rate
6.09%
Comparison Rate
6.15%
Fees
Application: $499
Ongoing: $0 p.a.
Monthly Payment
$3,030
Principal & Interest 3Y Fixed5% min. depositOwner-occupierOffset account
Interest Rate
6.04%
Comparison Rate
6.09%
Fees
Application: $500
Ongoing: $0 p.a.
Monthly Payment
$3,014
Principal & Interest 3Y Fixed20% min. depositInvestment
Interest Rate
6.19%
Comparison Rate
6.34%
Fees
Application: $595
Ongoing: $0 p.a.
Monthly Payment
$3,063
Principal & Interest 3Y Fixed20% min. depositOwner-occupier
Interest Rate
5.99%
Comparison Rate
7.59%
Fees
Application: $0
Ongoing: $395 p.a.
Monthly Payment
$2,998
Principal & Interest 3Y Fixed20% min. depositOwner-occupier
Interest Rate
5.99%
Comparison Rate
6.32%
Fees
Application: $449
Ongoing: $0 p.a.
Monthly Payment
$2,998
$2000-$4000 cashback
Eligible refinancers can get up to $4,000 cashback when switching their loan to IMB. Loan value criteria applies. Other terms and conditions also apply.
Principal & Interest 3Y Fixed5% min. depositOwner-occupier
Interest Rate
6.49%
Comparison Rate
7.61%
Fees
Application: $600
Ongoing: $0 p.a.
Monthly Payment
$3,160
Principal & Interest 3Y Fixed20% min. depositInvestmentOffset account
Interest Rate
6.19%
Comparison Rate
6.62%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$3,063
Principal & Interest 3Y Fixed20% min. depositOwner-occupier
Interest Rate
5.99%
Comparison Rate
6.12%
Fees
Application: $0
Ongoing: $299 p.a.
Monthly Payment
$2,998
Principal & Interest 3Y Fixed30% min. depositOwner-occupier
Interest Rate
6.48%
Comparison Rate
6.57%
Fees
Application: $0
Ongoing: $399 p.a.
Monthly Payment
$3,157
Interest only 3Y Fixed5% min. depositInvestmentOffset account
Interest Rate
6.44%
Comparison Rate
6.20%
Fees
Application: $500
Ongoing: $0 p.a.
Monthly Payment
$3,144
Principal & Interest 3Y Fixed5% min. depositOwner-occupier
Interest Rate
5.99%
Comparison Rate
6.36%
Fees
Application: $449
Ongoing: $6 per month
Monthly Payment
$2,998
Interest only 3Y Fixed20% min. depositInvestment
Interest Rate
6.39%
Comparison Rate
6.74%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$3,128
Principal & Interest 3Y Fixed30% min. depositOwner-occupierOffset account
Interest Rate
6.25%
Comparison Rate
6.42%
Fees
Application: $0
Ongoing: $248 p.a.
Monthly Payment
$3,082
Interest only 3Y Fixed10% min. depositOwner-occupier
Interest Rate
6.34%
Comparison Rate
6.42%
Fees
Application: $449
Ongoing: $6 per month
Monthly Payment
$3,111
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Nicole-Pedersen-McKinnon
This article was fact-checked and reviewed by , an accredited and award-winning finance broker and industry mentor. Content has been updated for 2022.

Why should I fix my home loan rate for 3 years?

Three years is a long time, but not when you consider most home loans have 30-year terms. Three-year fixed rate loans appeal to some borrowers for the following reasons:

  • Repayment certainty. Knowing your repayments won't change for 3 years means you can budget for your repayments and not get caught by rising rates.
  • Forget about rate rises. Borrowers on variable rate home loans know that their home loan rate could rise at any time. With fixed rate loans you don't have to worry. For some borrowers this peace of mind is worth getting a slightly higher rate.
  • Finding the right balance. Fixing for a short time means a locked-in interest rate, but fix for too long and you might have to pay an expensive break fee if you need to refinance or exit the loan. Anyone can get interest rate expectations wrong and you could be locked in for a longer term, paying over the odds. For some borrowers the 3-year fixed option is the perfect balance.

How do 3-year fixed rate home loans work?

A 3-year fixed rate home loan is like any other home loan: you borrow money and repay it over the loan term. But for the first 3 years of the loan your repayments will stay the same every month.

After the fixed period, your loan reverts to a variable rate loan. Variable interest rate home loans can change at any time as lenders respond to changes in money markets and the overall economy.

Most lenders offer fixed rates between 1 and 5 years. Learn more about different fixed periods with these guides:

Are 3-year fixed rate loans higher than variable rate loans?

While 3-year fixed rate home loans are usually higher than comparable variable rate home loans, many lenders have been cutting their fixed rates lately. Experts are predicting interest rates will start to fall in late 2024 or 2025, so borrowers are less likely to fix their rates at the moment. Many banks and lenders are responding to this by making their fixed rates lower than their variable rates.

It is a rare event however, and usually only happens when interest rates are very low across the board.

Is it too late to lock in a low 3-year fixed rate?

A fixed rate loan is more about certainty than getting the lowest possible deal, especially now that fixed rates are higher. It's not necessarily too late, if your goal is to focus on peace of mind rather than getting the lowest and cheapest possible rate.

You can see the current difference between fixed and variable rates on our average interest rates guide.

How do I compare 3-year fixed rate home loans?

To make sure you get a great deal on a 3-year fixed rate loan, pay attention to the rate, the fees and the loans' features.

Focus on the following:

Interest rate

Get a lower rate

Even if fixed rates are higher than variable, it's important to compare multiple 3-year fixed rates to find a good deal. Why pay more interest for no reason?

Fees

Get a loan with low fees

Some home loans have lots of fees and others have none. A lower interest rate is more important, but the fewer the fees, the cheaper the loan will be.

Features

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.

What kind of 3-year fixed rate home loans are available?

3-year fixed rate loans are a common home loan type. Both owner-occupiers and investors have a lot of loans to choose from.

Beyond the standard fixed rate principal-and-interest home loans, borrowers can also consider:

  • Fixed rate package home loans.
  • Fixed rate interest-only investor loans.
  • Low deposit fixed rate home loans.
  • Bad credit fixed rate home loans.

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More questions about fixing your home loan rate for 3 years?

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6 Responses

    Default Gravatar
    GregJuly 8, 2015

    How is your comparison rate calculated?

      Default Gravatar
      JodieJuly 8, 2015

      Hi Greg,

      Thank you for your comment.

      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.

      You may read our comparison rate guide on the importance of comparison rates when comparing home loans.

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

      I also recommend getting in touch with a licensed mortgage broker. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application.

      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 they work out the comparison rate for any 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, this is 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.

      I also recommend getting in touch with a licensed mortgage broker. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application.

      Regards
      Jodie

    Default Gravatar
    anneNovember 2, 2013

    which banks the lowest fix 3 years home loan

      AvatarFinder
      MarcNovember 4, 2013Finder

      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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