Compare 3 Year Fixed Rate Home Loans

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

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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.

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.

UBank UHomeLoan - 3 Year Fixed Rate (Owner Occupier, P&I)

1.85 % p.a.

fixed rate

2.24 % p.a.

comparison rate

UBank Home Loan Offer

A competitive fixed rate loan with no ongoing fees. Requires a 20% deposit.
  • Interest rate of 1.85% p.a.
  • Comparison rate of 2.24% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $100,000
  • Max borrowing: $1,000,000
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Compare 3 year fixed rate home loans

$
years
Name Product Interest Rate (p.a.) Comp. Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
UBank UHomeLoan Fixed
1.85%
2.24%
$0
$0 p.a.
80%
$544.38
A competitive fixed rate loan with no ongoing fees. Requires a 20% deposit.
Australian Unity Health, Wealth and Happiness Package Fixed Home Loan
1.89%
2.77%
$0
$399 p.a.
70%
$547.35
Up to $2,000 cashback.
With a 30% deposit or equity, get access to an 0.10% rate cut and big discounts on credit cards and health insurance. You may qualify for up to $2,000 cashback (Terms, conditions and exclusions apply).
Well Home Loans Balanced Fixed Home Loan
2.04%
2.17%
$250
$0 p.a.
90%
$558.56
A low 3 year fixed rate for home buyers. Add a 100% offset account with a $10 monthly fee. Not available for construction purposes.
Australian Unity Health, Wealth and Happiness Package Fixed Home Loan
1.99%
2.91%
$0
$399 p.a.
80%
$554.81
Up to $2,000 cashback.
Borrowers with min. 20% deposits or equity are eligible for this ultra-low rate loan, packed with features. You may qualify for up to $2,000 cashback (Terms, conditions and exclusions apply).
Newcastle Permanent Building Society  Premium Plus Package Fixed Rate
2.09%
3.58%
$0
$395 p.a.
80%
$562.33
$2,000 cashback for eligible refinancers borrowing $250,000 or more.
Great Southern Bank Fixed Rate Home Loan
1.97%
3.86%
$600
$0 p.a.
95%
$553.31
Pay no ongoing fees and lock in your rate for 3 years to organise your budget.
ME Flexible Home Loan Fixed with Members Package
2.09%
3.27%
$0
$395 p.a.
80%
$562.33
Get a low 3 year fixed rate with a 100% offset account and package discounts.
Macquarie Bank Basic Fixed Home Loan
2.19%
2.42%
$0
$0 p.a.
80%
$569.91
Borrow up to $750,000 with this basic 3 years fixed rate home loan. Refinancers can switch with a convenient digital application.
Mortgage House Fix and Save
1.99%
3.19%
$600
$395 p.a.
95%
$554.81
Lock in a competitive rate for 3 years. Available with a 5% deposit.
Newcastle Permanent Building Society Fixed Rate Home Loan
2.49%
3.83%
$0
$0 p.a.
95%
$593.01
$2,000 refinance cashback
A low 3-year fixed rate with the option to split your loan for free. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
IMB Fixed Rate Home Loan
1.97%
2.81%
$449
$6 monthly ($72 p.a.)
95%
$553.31
NSW and ACT customers only. 3 years fixed interest terms and free access to redraw facility online. Available with a 10% deposit.
ME Flexible Home Loan Fixed
2.24%
3.80%
$0
$0 p.a.
80%
$573.72
Pay no application fees and access a fee-free redraw facility with this fixed rate loan.
Newcastle Permanent Building Society  Premium Plus Package Fixed Rate
2.39%
3.66%
$0
$395 p.a.
95%
$585.25
$2,000 refinance cashback
A two year fixed rate home loan with no application fees. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
UBank UHomeLoan Fixed
2.09%
2.30%
$0
$0 p.a.
80%
$562.33
A competitive 3 year fixed rate with no ongoing bank fees.
Well Home Loans Balanced Fixed Home Loan
2.29%
2.29%
$250
$0 p.a.
90%
$577.55
A competitive 3 year investor rate with principal and interest repayments. Optional offset account with a $10 monthly fee. Not available for construction purposes.
UBank UHomeLoan Fixed
2.24%
2.64%
$0
$0 p.a.
80%
$573.72
Pay no ongoing fees on this investment loan fixed for 3 years.
Macquarie Bank Basic Fixed Home Loan
2.09%
2.32%
$0
$0 p.a.
70%
$562.33
Get a low interest rate and a mortgage with flexible, basic features. No application or ongoing fees. Requires a 30% deposit. Refinancers can switch with a convenient digital application.
UBank UHomeLoan Fixed
2.09%
2.60%
$0
$0 p.a.
80%
$562.33
Pay no ongoing fees on this competitive investment loan and fix your rate for 3 years.
IMB Fixed Rate Home Loan
2.35%
3.33%
$449
$6 monthly ($72 p.a.)
90%
$582.16
NSW and ACT customers only. A 3 years fixed rate investor which allows extra repayments to be made.
Suncorp Home Package Plus Fixed
2.28%
3.15%
$0
$375 p.a.
80%
$576.78
Borrowers with 20% deposits can lock in a low fixed rate loan for three years. Eligible new borrowers can get the annual package fee reimbursed for the life of the loan.
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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.

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

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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 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.

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