Are 20-year or 30-year fixed rate loans available?

No, there are no lenders in Australia that offer 20 or 30 year fixed rates for standard residential home loans.

However, a select few of our lenders offer 10 year and 5 year fixed rate home loans.

What is the maximum fixed rate term?

The maximum fixed rate term for a home loan is 10 years.

If you fix for 10 years you can then extend your fixed rate for another 10 years at the end of the fixed term, effectively giving yourself a 20 year fixed rate.

Do be careful because when you re-fix the rate you will have to negotiate with your bank and accept the rate that they are offering at that time.

If their rate is no longer competitive at that time you can refinance to a bank with a better offer.

How do you find the cheapest long term fixed rate?

To find a cheap long term fixed rate, call us on 1300 889 743 or complete our free online assessment form and let our mortgage brokers shop around for you. We specialise in finding our customers the best interest rates from our panel of lenders and we can let you know which banks are willing to discount their rates below those advertised on their websites.

Lenders tend to update their fixed rates & comparison rates on a regular basis so there are no single websites that have up to date information that covers all the bank and non-bank lenders.

Due to the way our banks are funded and the regulations imposed on our banks it is a very high risk for them to offer longer term fixed rates. Their exposure to financial meltdowns and economic downturns is multiplied by offering longer term fixed rates.

As a result, few banks will offer anything longer than 5 years. Some of them have 10 years fixed rate term but none will offer longer than this.

What do I need to consider before fixing my rate?

Before you lock your rate in you need to be sure that a fixed rate loan is suitable for your situation. Long term fixed rates tend to suit buy and hold investors more than people buying a house to live in.

  • Will you sell the property? Selling the property during the fixed rate term is a bad idea! Australian lenders impose hefty fees for breaking a fixed rate contract. By selling the property you repay the loan, and so are slugged with a large fee which can often be over $10,000!
  • Will you make extra payments? Fixed rate loans tend to have restrictions making more than ten or fifteen thousand per year in extra repayments. If you pay more than that you may incur break fees.
  • To rate lock or not to rate lock? When you apply for a fixed rate loan you have the option of locking in the interest rate. For a small fee you can protect yourself from changes in the money market that may alter the fixed rate offered by your bank between the time of filling in an application and the time when your loan account is opened. Otherwise you will get the (possibly higher) rate at the time of settlement, not the time of applying.
  • Features, bells & whistles. Fixed rates are renowned for having even less features than a basic loan. This means that 100% offset, redraw, line of credit accounts and repayment holidays are usually completely absent. Features such as interest only repayments and professional package discounts can still be obtained with a fixed rate. By taking a loan that is part fixed part variable you can get all the features without losing your protection from rate movements.

How do I apply for a long term fixed rate home loan?

Looking for a fixed rate mortgage in Australia? Please do not hesitate to call us on 1300 889 743 or complete ourfree online assessment form about the fixed rate loans suitable for your situation.

Unfortunately, 20 year fixed rates and 30 year fixed rates are not available, however we can show you which lenders have competitive 10 year fixed rates.

  • Moore

    Is fixed rates better than standard variable rates? How can one determine which rate to go with when taking a mortgage, please can someone explain.

  • Hi Moore,

    There is no way to tell whether a fixed rate home loan is better than a variable rate loan or vice-versa. This is because interest rates can go either way in the future, and the choice will depend on your situation.

    Lenders have separate interest rates for fixed rate and variable rate loans. Basically, their fixed rate is higher than the variable rate if they think the interest rates are likely to increase in the future. On the other hand, if they think interest rates will decrease then they may set a fixed rate lower than the variable rate.

  • Marshall D.

    What are introductory rate home loans? Can I get that and maybe fix later?

  • Hi Marshall, an introductory rate is a special discount on the interest rate of your home loan, usually for the first one year. After the low rate period the rate will revert to a higher interest rate or a different loan type. During that first year your repayments are significantly lower, allowing you to get a head start on your loan. Some lenders now offer intro rates ranging from six months up to to three years. And yes, you can fix later.

  • Wardlaw

    What about fixing the rates on a construction loan? Is this possible?

  • Hi Wardlaw,

    Every lender in Australia offers fixed rate loans, however only a few will allow you to have the security of a rate that has been locked in while you are building your home. This is because fixed rate loans are more complex for banks to fund, so they don’t allow you to draw down the loan in progress payments. Luckily, there are some lenders that have different sources of funding for their loans. Please check out the fixed rate construction loans page for more info:

  • marin

    I would like to refinance to another bank but I don’t seem to be able to get the banks to grant a better rate. Can you help?

  • Yes, we can help with that. We have relationships with more than 30 bank and non-bank lenders all over Australia. Our mortgage brokers are not only credit experts but also know how to negotiate successfully. Please call 1300 889 743 to speak with one of us about your personal situation and loan needs.

  • Barragan

    Can you give me a few examples of how much extra repayments I can make before break fees kick in?

  • Hi Barragan,
    That would depend on which lender you’re using. For example, CBA can allow you to make up to $10,000 in extra repayments per annum. NAB can allow for $20,000 in additional repayments during the fixed rate term for some and none for some others.