Last Updated: 9th December, 2021

Which lenders have the lowest one year fixed rates?

Most banks offer attractive discounts when you commit to a fixed rate home loan and you can end up saving you thousands of dollars!

The question is, how long should you fix for?

Discuss your options with one of our mortgage brokers by calling us on 1300 889 743 or enquiring online.

Fix for one year or more?

Deciding to fix is one thing, deciding how long to fix for, is another! Most people are hesitant to commit to a fixed interest rate for longer than a year.

This is because they do not want to be locked into a high interest rate if there is a large reduction in rates. No one wants to pay above market interest rates!

Why fix for longer?

What most people don’t know is that fixing for 3 or 5 years may be easier on their pocket. It all depends on the current state of the money market.

If the market is predicting interest rates to rise in the future then 1 year fixed rates will be lower than 3 or 5 years fixed rates. Whereas if rates are predicted to fall then longer term rates will be lower.

This is why you really should consider all of your options, including a longer term fixed rate, before you make a decision.

Should I fix?

Making the decision to fix your interest rate is something that many borrowers are undecided on. Some decide to stick with a variable interest rate simply because they believe that rates are set to fall.

Others are concerned about the effect of rising interest rates and want to budget more effectively, choosing to fix.

So what should you do? Read on to find out how you can fix for just one year and take advantage of great discounts and low interest rates!

Think about it carefully

Before fixing your interest rate you should consider whether it will be a beneficial option for you.

The media is constantly speculating that the RBA will reduce interest rates, but until that happens, it may be better to fix.

Not even major banks can predict whether the RBA will cut rates, and if they do, not all banks will follow.

Some banks are even increasing their rates!

With the cost of business rising, many major lenders are increasing their standard variable rates independently of the RBA.

Fixing your interest rate means more stability!

Speak to your financial advisor for more information. If you want to fix your loan, please call us on 1300 889 743 or enquire online today.

We can help you take advantage of low market rates, saving you money on your loan.

When should I fix?

If you are thinking of fixing your interest rate it is best to do so when market rates are falling and lenders are offering competitive pricing.

Speaking to the right people or taking note of RBA and financial commentary, may assist you in deciding when the ideal time to fix is.

Call us on 1300 889 743 or enquire online today and we can help you fix your interest rate.

What loan types are available?

  • Home loans: Most major banks offer 12 month, fixed rate interest on standard residential home loans.
  • Investment loans: If you are taking out a mortgage to purchase an investment property, a one year fixed interest rate option is also available.

Whether you are a first home buyer, already have a home loan for your owner occupied dwelling or are a property investor, you can fix your interest for a term of one year today.

Enquire online or call us on 1300 889 743 to find out how we can help you get the best fixed interest rate around.

Which banks offer one year fixed rate loans?

A variety of major banks and non-conforming lenders offer competitive one year fixed rate loan packages:

  • AMP Introductory 1 Year Fixed Rate.
  • ING Direct One Year Fixed Rate Loans.
  • Macquarie Bank One Year Fixed Rate.
  • Provident Capital One Year Fixed Rate Home Loan.
  • Bankwest Fixed Rate Home Loan – One Year.
  • RAMS One Year Fixed Rate Home Loan.
  • ANZ Fixed Rate Home Loan – One Year.
  • Commonwealth Bank – One Year Fixed Rate Home and Investment Loans.
  • St.George Fixed Rate Home Loan – One Year.

Features of a one year fixed rate loan

The features of your loan will differ depending on the lender that you apply with. Most major banks generally offer:

  • Repayment flexibility: You can usually choose your repayment structure. This can range from weekly, to fortnightly or monthly loan repayments.
  • Loan term: Most lenders offer flexible loan terms, ranging from 10-30 years. You can choose to fix your interest for just one of these years, taking advantage of a rate reduction.
  • Additional repayments: Some lenders allow you to make additional repayments, without charging you a fee.
  • Redraw facility: Some banks will allow you to make redraws, free of charge.

Are there any fees?

Most banks charge standard loan establishment and application fees. You may also incur charges if you make additional repayments during that fixed 12 month period.

Note: This varies from lender to lender.

Will I have to pay break or exit fees?

No, you will not be charged an exit fee as these have been abolished by regulations imposed on banks and other non-conforming lenders.

However, if you break out of the fixed rate contract before the term ends or discharge your debt, you will be charged a break fee.

You will also have to pay a break fee if you are currently under a mortgage and want to switch to a more competitive fixed rate package.

Can I pay interest only?

Choosing an interest only loan product, can reduce the amount you pay each month, making it a great option for investors.

Some banks will even allow you to borrow up to 90% LVR!

We know a few select lenders that offer interest only repayment options. Please speak to us on 1300 889 743 or enquire online if would like to pay interest only.

Can I pay my interest in advance?

Yes, as most banks offer interest in advance loan products, for a term of 12 months.

Pre-paying your interest in advance has many taxation advantages, making it an attractive option for investors or those that are refinancing.

You may also qualify to borrow the interest!

If you wish to apply for an interest in advance loan, please speak to us on 1300 889 743 or enquire online today.

Benefits of a one year fixed rate

Fixing your interest rate has many advantages. Some include:

  • Certainty of fixed repayments, even in periods of rate increase.
  • Ability to budget, as you know how much you will be repaying.
  • Lower introductory rates offered by some lenders.
  • Save money to put toward other expenses.

Disadvantages of a one year fixed rate loan

  • If interest rates fall, you are stuck with a higher fixed interest rate.
  • You may have to pay a break fee if you choose to change back to variable during the fixed rate term.
  • Not as flexible as variable rate loans.
  • Variable interest rate is sometimes lower than a fixed rate.

Fix your interest for one year today!

Ready to make the change from variable to fixed interest rates? Contact us on 1300 889 743 or enquire online and our mortgage brokers will call you to discuss your situation.

Enjoy financial stability and the knowledge that your repayments will always remain the same, regardless of fluctuating market rates.

Speak to an expert today to arrange your new fixed rate interest loan!