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.
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9+
Excellent
These home loans offer low costs, coupled with a host of features, giving the best overall value.
7+
Great
These home loans may have slightly higher interest rates or fewer features but overall, a competitive offering.
5+
Standard
Usually the home loans would offer above average rates. They may still include some competitive features.
0+
Basic
Higher costs and/or fewer features.
Key takeaways
- You can use the comparison table 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.
- Many 3-year fixed rates are cheaper than or on par with variable rates at the moment.
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. This can be a good or a bad thing.
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:
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. Although you wouldn't benefit from any rate cuts during your fixed period, three-year fixed rate loans can appeal 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.
Are 3-year fixed rate loans higher than variable rate loans?
Three-year fixed rate home loans are usually higher than comparable variable rate home loans. However, many lenders cut their fixed rates throughout 2025 as the RBA cut the cash rate and lenders had to have more lucrative fixed offers. h
3-year fixed interest rates are currently some of the lowest on the market.
The average owner occupier 3-year fixed interest rate in December 2025 is 5.59%
The average owner occupier variable rate in December 2025 is 6.46%
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. 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.
"At the peak of the government's stimulus package during Covid when interest rates were at rock bottom, I, along with millions of Australians, decided to fix my mortgage rate for as long as I could. It turned out to be a wise choice given how quickly rates rose soon after.
By my calculations, I have easily saved more than $10,000 with that decision. The fact of the matter is that no one is 100% sure what the future holds, even the most seasoned bankers and economists can get it wrong sometimes. Whether or not to fix a home loan rate depends purely on your own personal outlook of where you think rates will be in the future and what your circumstances are. If you get it right, it can pay off quite handsomely."
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:
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?
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.
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?
Both owner-occupiers and investors have a lot of loans to choose from. 3-year fixed rate loans are a common home loan type.
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.
More questions about fixing your home loan rate for 3 years?
What is Finder Score?
The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.
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How is your comparison rate calculated?
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
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??
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
which banks the lowest fix 3 years home loan
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.