When you look into getting a home loan in Australia, you are generally offered one of three options:
- Fixed-rate loan
- Variable-rate loan
- Split loan
Get A Competitive Deal
The table below lists the most competitive fixed rates currently available in the Australian market.Fixed Loan Term | Interest Rate | Comparison Rate* | Contact Us |
---|---|---|---|
1 year fixed | 5.89% | 8.29% | Apply Now |
2 year fixed | 5.79% | 6.39% | Apply Now |
3 years fixed | 5.69% | 6.35% | Apply Now |
4 years fixed | 5.79% | 6.35% | Apply Now |
5 years fixed | 5.79% | 7.55% | Apply Now |
10 years fixed | 7.49% | 8.09% | Apply Now |
Interest in advance | 6.34% | 6.94% | Apply Now |
1. Know When To Fix
Choosing the right loan is a great start but what is the point if you lock yourself in when rates are high, only to see the Reserve Bank cut interest rates? By fixing when the economy is running smoothly and interest rates are cheap, you will protect yourself from credit crises and volatility. Unfortunately, most Australians fix when rates are high because they fear that rates are going to go higher. Remember, three to five years is a very long time, so take time to make your final decision on the type of interest rate you want to go forward with.2. Choose The Right Lender
Many people just go straight to their bank and try their best to negotiate a good rate. Unfortunately, this strategy is flawed because, unlike variable rates, the major banks and other lenders have completely different fixed rates. Why is there so much variation? Because each lender has their own opinion about the likely direction of interest rates in the future and so they price their loans with different rates. A mortgage broker can negotiate on your behalf to get a great offer from one of the lenders on their panel.3. Should You Fix At All?
Of those who apply for a fixed-rate loan, many of them would be better off with a variable rate. Why is it that some people are better off with variable rates? A fixed loan is like a fixed contract: if you break it then it is going to cost you a small fortune. Do not fix your interest rate if you plan to:- Sell your property
- Make a large lump-sum repayment
- Refinance your home loan
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Break cost calculator
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Frequently Asked Questions
What Is A Rate Lock?
What is A Break Cost?
Will Interest Rates Go Up Or Down?
New Flexible Fixed Rates
Traditionally, fixed-rate loans lack the flexibility other home loan products offer. However, with new products coming out in the market, some fixed-rate loans now offer features including:- Extra payments without penalty
- Redraw facilities
- 100% offset facilities
- Low or no monthly account keeping fees
- Interest only repayments