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Is it time to fix your home loan rate?

Rates and fees last updated on

With home loan rates low now might be a good time to fix. We explain the pros and cons of fixed and variable loans.

With interest rates comparatively low and mortgage stress an increasing concern for Australians, more borrowers are choosing to fix their rates. So is fixing the right choice for you?

The answer depends on your circumstances and goals as much as current market conditions. Locking in a rate for a number of years isn’t a decision to take lightly. There’s always the risk that you’ll be stuck with a rate much higher if the RBA decides to cut the official cash rate after you fix. There’s also the flip side: you might enjoy a loan with a rate much lower than the variable rate loans available if the RBA raises rates.

You can read ahead learn more about the difference between fixed and variable loans or start comparing loans in the tables below.

Compare fixed and variable rate home loans

Rates last updated December 15th, 2017
$
Loan purpose
Offset account
Loan 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
4.09%
4.83%
$0
$0 p.a.
95%
A low 3-year fixed rate with the option to split your loan for free.
3.79%
4.77%
$0
$395 p.a.
90%
3 years fixed platinum package with a low interest rate and $0 application fee.
3.99%
4.19%
$500
$0 p.a.
95%
3.89%
4.61%
$0
$395 p.a.
90%
3.89%
4.72%
$445
$6 monthly ($72 p.a.)
90%
3 years fixed interest terms and free access to redraw facility online.
3.94%
4.84%
$0
$395 p.a.
95%
Receive discounts on interest rates with the Choice Package. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.99%
4.77%
$0
$0 p.a.
95%
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
3.99%
4.08%
$395
$0 p.a.
80%
A competitive refinance offer on a 3 year fixed rate.
4.04%
5.05%
$600
$8 monthly ($96 p.a.)
95%
Flexible fixed rate home loan which will allow you to take break from repayments if you're ahead of scheduled repayments.
3.87%
3.87%
$0
$10 monthly ($120 p.a.)
90%
Get a competitive interest rate for 3 years and a discounted variable rate when the fixed period ends.
4.32%
3.85%
$0
$0 p.a.
80%
A fixed rate loan with free redraws, few ongoing fees. Apply online with a fast approval process.
3.87%
4.47%
$300
$10 monthly ($120 p.a.)
80%
This fixed rate loan includes a special offer for new lending of $150000 with an LVR of 80% or less. Offer extended.
4.94%
5.00%
$0
$0 p.a.
95%
A 3 year fixed rate offer from Homeloans.
4.14%
5.07%
$600
$8 monthly ($96 p.a.)
95%
A fixed rate home loan offer from Commonwealth Bank.
4.38%
5.21%
$295
$12 monthly ($144 p.a.)
90%
Get budgeting certainty with a competitive 3-year fixed rate.
4.29%
4.63%
$0
$350 p.a.
80%
Enjoy the certainty of a fixed rate home loan along with additional repayments up to $1,000 per month without penalty.
4.39%
5.42%
$300
$10 monthly ($120 p.a.)
95%
Principal and Interest or Interest only terms, lock in a 3 year fixed rate.
4.09%
5.08%
$600
$10 monthly ($120 p.a.)
95%
Redraw facility and interest-only repayments available.
4.19%
5.09%
$600
$8 monthly ($96 p.a.)
95%
Ability to make extra repayments during the fixed term and access the money through redraw.
4.09%
5.00%
$0
$8 monthly ($96 p.a.)
95%
Enjoy a 3-year fixed rate along with additional features.
3.94%
4.90%
$0
$395 p.a.
95%
A 3 years fixed rate that allows borrowers to borrow from $150000 up to $10000000.
3.99%
4.90%
$0
$395 p.a.
95%
A competitive three year fixed rate with discounts on fees.
3.83%
4.68%
$0
$299 p.a.
95%
A competitive and flexible package that offers discounts and a sharp 3-year fixed rate.
3.89%
4.51%
$0
$299 p.a.
95%
A low 3-year fixed rate with no ongoing fees.

Compare up to 4 providers

Rates last updated December 15th, 2017
$
Loan purpose
Offset account
Loan 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
3.62%
3.62%
$0
$0 p.a.
80%
A discounted, competitive variable rate loan with limited fees.
3.54%
3.56%
$0
$0 p.a.
80%
For new home buyers only. No refinance option. A low interest variable home loan with no application fee and free redraws. Offer ends 2 January.
3.64%
3.67%
$0
$0 p.a.
80%
A home loan with a competitive variable rate, limited fees and plenty of flexibility.
3.64%
3.66%
$0
$0 p.a.
80%
A basic home loan with a competitive rate and low fees.
3.58%
3.59%
$0
$0 p.a.
80%
A competitive variable rate product with low fees offered by a 100% online lender.
3.69%
3.69%
$0
$0 p.a.
90%
A special limited time offer for owner occupiers. An IMB Transaction Account must be opened with this loan.
3.64%
3.67%
$0
$0 p.a.
80%
A low rate home loan with no ongoing fees.
3.64%
4.03%
$0
$395 p.a.
80%
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.74%
3.74%
$0
$0 p.a.
95%
A low rate home loan with no application or ongoing fees. Loan comes with 1 year of free home and contents insurance. Note that to be eligible for this loan you must be QLD resident.
3.74%
3.74%
$0
$0 p.a.
80%
Pay no application fee or ongoing fees with this loan.
3.96%
3.98%
$0
$0 p.a.
90%
Take advantage of a redraw facility, competitive variable rate and no application or settlement fees for a limited time.
3.78%
3.78%
$0
$0 p.a.
80%
A basic low-rate home loan that still offers some useful features.
3.71%
3.74%
$600
$0 p.a.
80%
A maximum 80% LVR home loan with no ongoing service fees and a linked transaction account.
3.69%
4.01%
$0
$299 p.a.
95%
A loan with no application fee and borrow up to 95% LVR.
3.68%
3.69%
$0
$0 p.a.
95%
A no frills loan with a competitive rate and a maximum LVR of 95%.
3.79%
4.11%
$0
$299 p.a.
80%
A fully featured home loan with an offset account and discounts available.
3.74%
4.15%
$0
$395 p.a.
80%
Enjoy a discount of a competitive interest rate and 100% offset account.
3.65%
3.66%
$0
$0 p.a.
90%
A competitive variable rate home loan with no application fee.
3.72%
4.19%
$0
$0 p.a.
80%
Enjoy a variable 3 year introductory rate with the Bankwest Equaliser Home Loan.
3.72%
3.74%
$0
$0 p.a.
80%
Take advantage of a 100% offset account along with no annual or application fees.
3.64%
3.78%
$0
$10 monthly ($120 p.a.)
80%
A competitive variable rate home loan with flexible features. You can earn 30,000 Velocity Points for every $100k you borrow (for a limited time, subject to eligibility requirements).
3.73%
3.73%
$0
$0 p.a.
70%
A special low variable rate for owner occupiers with 100% offset account and no application or ongoing fees.
4.09%
4.25%
$300
$10 monthly ($120 p.a.)
80%
Get a competitive investment home loan rate without expensive features you may not need.
3.97%
3.97%
$0
$0 p.a.
90%
A competitive variable rate home loan with no ongoing fees.
3.79%
3.80%
$0
$0 p.a.
80%
A competitive rate with no ongoing monthly fees or application fees.
3.87%
3.92%
$0
$0 p.a.
90%
A discounted interest rate home loan with no monthly fees.
3.97%
4.02%
$445
$0 p.a.
90%
Get a competitive rate without features you may not use.
3.99%
4.00%
$0
$0 p.a.
80%
A low-fee variable rate investor loan with a fast online application process.
3.99%
4.02%
$600
$0 p.a.
90%
Take advantage of a 0.60% discount on your rate, a 100% offset account and no ongoing fees.
3.99%
3.99%
$395
$0 p.a.
80%
A flexible low-rate variable home loan that lets you combine your loan with other financial products.
4.09%
4.11%
$0
$0 p.a.
80%
A low variable rate loan with no application or ongoing fees.
3.84%
4.58%
$445
$0 p.a.
90%
A two year discounted rate which reverts to an ongoing life of loan discount afterwards.
4.17%
4.21%
$600
$0 p.a.
95%
A competitive no frills home loan. 350K NAB Rewards Points offer available. Terms and conditions apply.
4.57%
4.94%
$0
$395 p.a.
95%
No application fee and 100% offset account.
3.68%
3.69%
$600
$0 p.a.
90%
Get a low variable rate along with some important basic features.

Compare up to 4 providers

Rates last updated December 15th, 2017
$
Loan purpose
Offset account
Loan 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
3.69%
4.15%
$395
$0 p.a.
80%
Refinance with UBanks low 1 year fixed rate offer. No application fee.
3.94%
4.98%
$0
$0 p.a.
90%
Investors can take advantage of a short term fixed rate with no application or ongoing fees.
3.94%
3.71%
$0
$0 p.a.
80%
Apply online for this fixed rate, low-fee loan with redraw facilities and an optional offset account.
4.29%
4.93%
$445
$6 monthly ($72 p.a.)
90%
Lock in a rate for one year and get the ability to make additional repayments for 12 months without penalty.
3.99%
5.25%
$600
$8 monthly ($96 p.a.)
95%
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.
4.64%
4.01%
$0
$0 p.a.
80%
Enjoy a fast application process and flexible repayment options with this fixed rate investment loan.
4.14%
5.26%
$600
$8 monthly ($96 p.a.)
95%
A 1 year fixed rate home loan from Commonwealth Bank.
4.09%
5.65%
$399
$8 monthly ($96 p.a.)
90%
Get a competitive 1-year fixed rate from an international bank.
4.14%
5.28%
$600
$10 monthly ($120 p.a.)
95%
Enjoy a 1-year fixed rate with flexible features such as redraw, rate lock, a partial interest offset facility, repayment pause and more.
3.99%
4.96%
$0
$395 p.a.
95%
Secure a competitive 1-year fixed rate with low ongoing fees.
3.99%
5.02%
$0
$395 p.a.
95%
A competitive package home loan with 100% offset account.
4.39%
5.79%
$600
$8 monthly ($96 p.a.)
95%
A competitive fixed rate home loan with extra repayments available.
5.99%
6.72%
$1,500
$12 monthly ($144 p.a.)
70%
Borrow from $100000 up to $2000000.
6.44%
7.25%
$1,500
$12 monthly ($144 p.a.)
70%
Enjoy a partial offset account and interest-only options.

Compare up to 4 providers

Rates last updated December 15th, 2017
$
Loan purpose
Offset account
Loan 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
3.65%
4.84%
$0
$395 p.a.
90%
A 2 years fixed platinum package that has $0 application and a loan redraw facility.
3.69%
4.86%
$0
$395 p.a.
90%
A special rate for first home buyers buying residential property and borrowing over $150K. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.94%
4.88%
$0
$0 p.a.
90%
Enjoy a low interest rate and borrow up to 90% (with LMI) of your property's value.
3.75%
4.78%
$445
$6 monthly ($72 p.a.)
90%
Fixed home loan.
3.84%
4.83%
$0
$0 p.a.
95%
Get a competitive 2-year fixed rate with no application or ongoing fees.
4.19%
3.78%
$0
$0 p.a.
80%
Tic:Toc's fixed rate owner occupier loan has a competitive rate, limited fees and a fast, easy online application process.
3.95%
4.99%
$300
$10 p.a.
95%
A flexible, competitive fixed rate loan that allows for extra repayments.
3.84%
4.21%
$0
$395 p.a.
95%
Lock in a competitive rate for owner occupiers for two years. Extra repayments up to $30,000 over the life of the fixed period can be made.
3.98%
5.13%
$600
$8 monthly ($96 p.a.)
95%
A fixed rate home loan with additional repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.
4.29%
4.05%
$0
$0 p.a.
80%
This fixed rate investor loan has limited fees and flexible repayment options. 100% online application process.
3.99%
3.84%
$0
$0 p.a.
80%
Fix a low rate home loan for 2 years with Aussie Home Loans.
4.09%
5.51%
$399
$8 monthly ($96 p.a.)
90%
Enjoy a low rate on a 2-year fixed home loan.
4.03%
5.04%
$600
$10 monthly ($120 p.a.)
95%
Flexible repayment options to help you save.
4.09%
4.59%
$0
$350 p.a.
90%
Get a 2-year fixed rate with a high maximum LVR and no application fees.
3.85%
4.95%
$0
$395 p.a.
95%
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.
3.88%
4.88%
$0
$395 p.a.
95%
Lock in a discounted fixed rate with a low service fee.
4.14%
5.16%
$600
$8 monthly ($96 p.a.)
95%
Peace of mind for two years with a fixed interest rate.
5.99%
6.67%
$1,500
$12 monthly ($144 p.a.)
70%
Lock in a competitive 2-year fixed rate on your SMSF property
4.08%
5.16%
$600
$8 monthly ($96 p.a.)
95%
Get the stability of a 2-year fixed rate with the flexibility of great features.
Gateway Credit Union Investment Land Fixed - 2 Years
4.59%
5.57%
$200
$0 p.a.
0%

Compare up to 4 providers

Rates last updated December 15th, 2017
$
Loan purpose
Offset account
Loan 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
4.39%
4.78%
$445
$6 monthly ($72 p.a.)
90%
Borrow up to 90% of your home’s value and lock in your rate for 5 years.
4.39%
4.23%
$395
$0 p.a.
80%
An online only home loan with a great 5 year fixed rate. Available for refinance and purchases.
4.54%
4.04%
$0
$0 p.a.
80%
Get quick online approval for Tic:Toc's fixed rate owner occupier home loan. Low fees, flexible repayments.
4.59%
5.01%
$0
$395 p.a.
95%
A competitive loan with flexible features. 350K NAB Rewards Points offer available. Terms and conditions apply.
4.64%
4.27%
$0
$0 p.a.
80%
This fixed rate investment loan has a competitive interest rate, limited fees and flexible repayment options. Apply online and get quick approval.
4.64%
4.89%
$445
$6 monthly ($72 p.a.)
95%
Enjoy the low ongoing fee and borrow up to 95%.
4.69%
5.14%
$600
$8 monthly ($96 p.a.)
95%
A flexible five year fixed rate home loan.
4.49%
5.01%
$0
$395 p.a.
95%
A discounted rate and fee waivers are available with this loan.
4.34%
5.00%
$600
$8 monthly ($96 p.a.)
95%
A fixed home loan rate from Commonwealth Bank.
4.44%
5.06%
$600
$10 monthly ($120 p.a.)
95%
Enjoy a 5-years fixed rate with great features such as rate lock, a partial interest offset facility, repayment pause and more
4.64%
5.04%
$600
$10 monthly ($120 p.a.)
95%
Borrow up to 80% of your home loan value.
4.59%
5.35%
$399
$8 monthly ($96 p.a.)
90%
Borrow up to $4 million on a competitive 5-year fixed rate
4.19%
4.83%
$0
$395 p.a.
95%
You can save on a host of Westpac products by packaging your 5-year fixed rate home loan.
6.84%
7.22%
$1,500
$12 monthly ($144 p.a.)
70%
SMSF investors can lock in their rate for 5 years.
4.49%
5.01%
$0
$8 monthly ($96 p.a.)
95%
A 5-year fixed rate that allows for extra repayments.
5.89%
6.39%
$350
$10 monthly ($120 p.a.)
70%
Fix your rate for 5 years and pay no application fee.
4.19%
4.90%
$0
$395 p.a.
95%
A competitive interest rate with a range of repayment choices.

Compare up to 4 providers

How do fix rate loans differ from variable rate loans?

As mentioned, fixed rate mortgages differ from variable rate loans in three main ways: rates, fees and features.

  • Rates. A fixed rate won’t change over the course of the agreed term. This means if you lock in a rate for three years your repayments will not change. This is useful if you’re sticking to a tight budget, or if you’re an investor looking to guarantee your cash flow won’t decrease over the next few years.
  • Fees. Fees can differ depending on your lender and the loan type, but one fee that is specific to fixed rate loans is the break cost. Break costs are charged when you exit a fixed length before the term is up. Because your bank itself borrows money from various funding sources when providing you with your loan, break costs are calculated using the rate your lender paid for your funds compared to the rate you locked in. They also take into account how long your fixed term still had until completion, and the loan size.
  • Features. Variable loans are more likely to come with features like offset accounts. Fixed rate loans typically come with fewer features and often limit your ability to make additional repayments. Most fixed rate loans will either not allow extra repayments, or limit this to a set amount each year - usually between $10,000 - $20,000.

Watch: finder's money expert Bessie on whether you should fix your rate

How do I know if it’s a good time to fix?

If you listen to advertisements from banks and other lenders, it’s always a good time to fix. Advertisements for fixed mortgages play on two fears - the fear of rates rising to a point where you can’t afford repayments anymore, or the fear that you’ll miss out on savings if you don’t lock in a great fixed rate before rates rise.

Here are a few ways of finding out if you should fix:

  • Check our RBA page. Our monthly survey collates data from the top economists and commentators in the country. They’ll regularly drop hints about where they think interest rates will be in the medium to long term. You can use this to find out what they think will happen to the cash rate, and therefore whether you should fix in a good rate or wait for further rate cuts before fixing.
  • Do you plan on making additional repayments towards your loan? As mentioned, fixed rate home loans generally don’t allow you to put extra repayments on your home loan, which can reduce your loan term and the interest payable. If you think you’ll want to put extra money towards your loan during the fixed term, it may be better to seek a variable rate home loan or choose a fixed rate home loan which allows additional repayments.
  • Are you happy keeping your property for the length of the fixed term? A lot can happen in the space of a year, let alone five. Keep in mind that if you exit a fixed home loan, you can be liable for break costs which can cost thousands. If you’re thinking of selling your property in the short term, a fixed rate home loan might not be the best choice for you, as you might be required to pay these break costs.

How long should I fix my home loan for?

Title

The length of time you fix for should take into account your lifestyle choices, such as whether you intend to sell your property over the course of the next few years, and whether or not you intend to put more of your income towards making loan repayments.

Economic information should also have a bearing on how long you fix for. If many leading economists believe rates will rise within the year, there’s a good possibility that this could happen. In reality, forecasting rates is difficult and depends on a range of complex factors, meaning it’s never completely reliable.

You might also want to obtain the advice of an experienced accountant, mortgage broker or financial planner, as they can help you work this out by examining interest rate trends and other economic data.

How can I compare fixed rate home loans?

If you’ve decided fixed rate home loans are right for you, a comparison should take into account the following:

RatesYou’ll want to compare both the advertised rate, and the comparison rate, which will take into account some of the fees you’ll have to pay with these loans into the rate. Rates will have a direct influence on the size of your repayments.
FeesHome loans can come with a range of fees including application fees, legal fees, settlement fees, annual or monthly fees and valuation fees. Compare these when viewing different home loans.
FeaturesFixed rate home loans generally have less features than variable home loans. It’s still a good idea to find out if you want a 100% offset account or the ability to make additional repayments, as well as a redraw facility, before you start comparing home loans.

Compare fixed rate home loans

The split rate solution

If you’re new to fixed home loans, one way to try them out first is with a split rate. This feature basically allows you to split your home loan into two or more portions and then choose a combination of fixed and variable rates for these portions.

This could mean you have a small portion of your loan using a fixed rate, and then have the remainder calculated using a variable rate.

Keep in mind that some lenders may have minimum amounts you can split your loan into, and might also limit the number of times you can split your home loan. They might also charge fees for splitting your home loan.

As mentioned above, it’s a good idea to speak to a broker, accountant or financial planner before taking out a split rate home loan.


Fixed home loans can offer a range of benefits for all types of borrowers. Just be sure to seek adequate advice before signing on the dotted line.

Compare mortgage brokers today

Marc Terrano

Marc Terrano is a content marketer manager at finder. He's been writing and publishing personal finance content for over five years and loves to help Australians get a better deal.

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