Last Updated: 12th October, 2020

Fixed-Rate Home Loans Drop Below 3%

Published by Otto Dargan on September 11, 2019

Over the last month, several of our lenders announced that they’re decreasing the interest rates on their fixed rate home loan products.

Fixed rates have fallen below 3%.

We’ve listed the best fixed-rate home loans available from our panel of lenders below.

Owner-occupied (Principal and Interest) Standard Fixed Rates

For loans with a loan to value ratio (LVR) of up to 60%:

  • 1-year fixed: 2.94% p.a. (*3.90% p.a.)
  • 3-year fixed: 2.94% p.a. (*3.81% p.a.)
  • 5 year fixed: 2.94% p.a. (*3.72% p.a.)

For loans with a loan to value ratio of up to 80%:

  • 1-year fixed: 2.99% p.a. (*3.95% p.a.)
  • 3-year fixed: 2.99% p.a. (*3.86% p.a.)
  • 5-year fixed: 2.99% p.a. (*3.77% p.a.)

For loans with a loan to value ratio of above 80%:

  • 1-year fixed: 3.04% p.a. (*4.00% p.a.)
  • 3-year fixed: 3.04% p.a. (*3.90% p.a.)
  • 5 year fixed: 3.04% p.a. (*3.82% p.a.)

*Comparison rate

**These rates are only available with a professional package.

Residential Investment Standard Fixed Rate (Principal and Interest)

The best investment loan fixed rates (P&I) that are available from our panel of lenders are:

  • 1-year fixed: 3.38% p.a. (*4.66% p.a.)
  • 3-year fixed: 3.39% p.a. (*4.62% p.a.)
  • 5-year fixed: 3.49% p.a. (*3.90% p.a.)

One of our lenders has a special offering of 3.49% p.a. (*4.98% p.a.) for a 3-year investment loan with interest only repayments.

*Comparison rate

**These rates are only available with a professional package.

Disclaimer: If your loan is already fixed then it’s best NOT to try to fix it with the new rate within the fixed term as it might incur break cost.

Should I fix my loan?

There isn’t a suitable answer to do this as it’s mostly based on your short and long term goals.

But typically, you shouldn’t fix your loan if you plan to sell your property, renovate, refinance your home loan within the fixed term or want the option to make large extra repayments on your home loan.

Interestingly, leading industry experts are predicting another cash rate cut by the RBA of 0.25% before the end of this year, with yet another rate cut forecasted for 2020.

So, staying on a variable rate home loan to see how low interest rates could get, can be a decent option.

Call us before you fix your home loan?

Our mortgage brokers are here to help you throughout the life of your loan.

If you’d like to fix, re-fix or refinance your home loan to take advantage of these low interest rates, please give us a call on 1300 889 743 or fill in our online assessment form today.

Interest Rates are correct as at 11/09/2019 and subject to change at any time. The comparison rate is based on a loan amount of $150,000 over a 25 year term.

WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply. Your full financial situation would need to be reviewed prior to acceptance of any offer or product.

labelCategory: Fixed Rate Loans