The alternative to a 15 year fixed rate

Unfortunately, 15 year fixed rate home loans don’t exist anymore.

However, some of our lenders offer 10 year and 5 year fixed rate home loans.

Please call us on 1300 889 743 or complete our free assessment form to get a quote from one of our mortgage brokers.

What is the maximum fixed rate term?

Some of our lenders offer a fixed rate term up to 10 years.

You can fix your rate up to 10 years, and then extend your fixed rate by 5 years at the end of the fixed term if you want to fix for 15 years. However, this will depend upon the bank’s policy at that time.

If the bank doesn’t allow you to re-fix the loan or charges you high interest rates for it, then you may be able to refinance to a new lender.

Which bank has the lowest fixed rates?

This question isn’t as simple as it first appears!

Banks constantly adjust their fixed rates to match their wholesale funding costs on the money market. 10 year rates tend to be far more stable than 1 year, 3 year or 5 year fixed rates that tend to move up and down in response to short term movements in the money market.

The number one bank for your fixed rate loan will vary depending on if your loan is a low doc or not, the amount you borrow and if you qualify for a professional package.

Call us on 1300 889 743 or complete our free online assessment form and we will find out which lender is best for your situation.

Can the lender change my rate even if it is fixed?

As a general rule, the lender cannot change your rate if it is fixed. Lenders have the right to alter a variable rate at any time, even if the reserve bank hasn’t changed interest rates. However this is not true for fixed rate loans.

Please refer to your loan contact for the specific details of your loan as it may vary between different lenders and loan types.

What happens if I’ve already fixed for 15 years?

Just until recently, one of our lenders offered 15 year fixed rate home loans.

If you’ve already fixed your home loan for 15 years, the lender will uphold the contract till the term ends. The unavailability of the 15 year fixed rate home loan will affect only the people who want to fix the home loan for 15 years after this policy change was made.

How do I apply for a fixed rate home loan?

Please call us on 1300 889 743 or complete our free online assessment form and we will go through your situation in detail to find the most suitable lender and fixed rate package for you.

  • Andrew

    I was on a fixed rate for 15 years, but now since it has been abolished can I break it as well, or will the lender charge me for breaking it?

  • Hi Andrew,

    A break fee is only applicable when you break your fixed term before it has ended. If your fixed term of 15 years hasn’t ended, and you want to change it, then you will be charged you a break fee.

    Regarding the abolition of the 15 year fixed rate, it’s for the new customers only. The existing customers will be retained under the same policy.

  • Dale S

    A 10-year fixed is fine for me so how much can I borrow to buy a unit that’s in a block with serviced apartments?

  • Hey Dale S,

    You may be able to borrow up to 90% of the property value on a case by case basis for that. Do note that this is only available if the unit is not being used as a serviced apartment but is in a block where most of the apartments are serviced.

  • Isbell

    How can I increase and improve my borrowing capacity?

  • Hey Isbell,
    Your borrowing capacity or borrowing power depends on your income, family size, location, current debts, type of loan and the lender that you choose. The easiest way to improve this is to choose a lender that can lend more for someone in your situation. Some banks are conservative when lending to investors, some use higher living expenses in their assessment and others will lend you less if you have an interest only loan. However you can also change your situation to improve your borrowing capacity. Please check out this page for details:

  • rodriguez

    How much does it cost to refinance a home loan?

  • There are many costs that may be applied to your refinance, many of which are usually added into your new mortgage. Please check out the refinance your home loan page to learn in detail about these:

  • Wright

    I was told by my bank manager that everyone uses 40% of the turnover in the BAS. Is this really true?

  • Hi Wright,
    Although the majority of the banks use 40%, there are actually some lenders that can use a higher percentage of turnover or calculate your income using a different method. One of our lenders can accept 50% of the turnover shown on your BAS as your income while other specialist lenders can look at the income, expenses and wages shown on your BAS and can use this to calculate your income.

  • Harvey

    I had a mortgage on a 3 year fixed term. It’s going to expire on coming March. Should I fix it again or keep it variable?

  • Hi Harvey,
    It sometimes makes sense financially to refinance within the fixed period despite the break costs and early exit fees. However, we can’t advise you without having a full understanding of your situation. You should speak to a mortgage broker about your situation if you’re considering this (this can be tricky at times).