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Compare the Best Fixed Rate Home Loans

  • Compare fixed home loan rates from 5.24% (comparison rate^ 6.24%)
  • Find the best fixed rates on terms from 1-5 years

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Best fixed rate home loans in Australia (2024)

Compare the best fixed home loan rates in Australia, starting from 5.24% p.a. (comparison rate^ 6.24% p.a.). Check your eligibility with 26 lenders online, instantly. We display all fixed rate loans on our database and we’re not paid by lenders if you click through to their website. The table is sorted by lowest regular repayment (during the fixed term). Use the filters to search for your best fixed home loan. Read the comparison rate warning and other important information.

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Rates updated 10 October 2024

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Fixed-rate loan news - October 2024

Peter Drennan

Peter Drennan, Money's Research & Data Expert

"Based on the RBA’s latest data, fixed-rate loans for terms over three years have increased by 0.08%, following a 0.06% rise in the previous month — reducing any benefit from locking in rates. Meanwhile, investor fixed rates have decreased, possibly in response to the strong growth in new investor loans."

Peter Drennan, Money's Research & Data Expert

What is a fixed rate home loan?

A fixed home loan has an interest rate that is fixed for a period — typically between one and five years. This means your repayments won’t change during the fixed rate period, protecting you from rate rises. On the other hand, it means you won’t benefit from lower repayments when rates drop during the fixed period.

While a fixed rate home loan may make budgeting easier by providing repayment certainty, you may not be able to make extra repayments, or there may be caps on additional repayments per year (e.g. maximum of $20,000 annually). You may also not have access to features like an offset account or redraw facility. Fixed rates are available on owner-occupier and investment home loans.

According to the Reserve Bank of Australia (RBA), only 1.4% of new owner-occupier loans in Australia are fixed. Although, fixed lending has been higher in the past, especially when interest rates were recently at record lows.

What happens at the end of your fixed home loan term?

When your fixed rate term ends, you’ll generally have three options:

1

You’ll automatically roll onto a variable rate with your current lender and your repayments will change

2

You can refinance your home loan either to fix your rate again for another period with your existing lender or another lender

3

You could choose a different variable loan or split loan, either with your current lender or with another

What are the current fixed mortgage rates?

  • The lowest fixed home loan rate on Money’s database is: 5.24% p.a. (comparison rate 6.24%. That’s for a three-year term for owner-occupiers making principal and interest repayments with a maximum loan-to-value ratio (LVR) of 90%.
  • Based on the RBA’s Housing Lending Rates, the average 1-3-year fixed home loan rate is: 6.01% p.a. The average 4-5-year fixed home loan rate is: 6.56% p.a.

The best fixed home loan rates will vary depending on the type of home loan you need (e.g. owner-occupier home loans tend to have lower rates than investor home loans) and your LVR. Lenders consider LVRs below 80% less risky because you’re borrowing a smaller amount relative to the property's value. Lower LVRs usually come with lower interest rates, while higher LVRs typically result in higher rates.

How long should you fix your home loan rate for?

According to the RBA, most borrowers in Australia who fix their mortgage interest rate do it for three years or less. However, how long you should fix your rate will depend on your financial circumstances. If you’re unsure about your options, it’s best to speak to a mortgage broker before locking yourself into a fixed rate.

Mansour Soltani home loan expert

Mansour Soltani , Money's home loan expert

“Generally, you’ll get a lower interest rate if you fix your loan for two or three years compared to five years. That’s because lenders charge a premium for the certainty provided by longer fixed terms. Fixing your loan for a longer duration exposes the lender to more uncertainty regarding future interest rate movements. On the other hand, some lenders may charge lower interest rates on longer fixed term home loans because they’ll make their money in break fees if you refinance during the fixed term.”

Mansour Soltani , Money's home loan expert

Are fixed rates cheaper than variable rates?

Based on Money’s analysis of various lenders (including Australia’s big four banks), home loans with fixed rates are currently marginally more competitive than most home loans with a variable rate.

According to Mansour, this may signal lenders expect the cash rate to fall in the next few years.

“Lenders update their fixed rates regularly based on economists' predictions around cash rate changes. They need to ensure their fixed rates are indicative of the current interest rate environment. If the cash rate was expected to go up, lenders may charge borrowers a higher rate for fixing their loan to compensate for potential losses in the future.”

Fixed rate home loan pros & cons

Pros
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  • Your repayments remain the same — you’re protected if there are sudden rate hikes during the fixed period
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  • A fixed interest rate makes it easier to calculate your borrowing costs (during the fixed period)
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  • You can choose short or long-term fixed terms to suit your financial situation or goals
Cons
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  • You won’t benefit from lower repayments if there are rate cuts during the fixed period
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  • Fixed rate home loans have fewer features available (e.g. you may not be able to make extra repayments or redraw)
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  • You may pay hefty break costs if you refinance or pay off your fixed rate loan early

Fixed rate home loan features explained

Some lenders offer a rate lock option which allows you to ‘lock’ your fixed rate while your home loan application is being processed and the purchase of your home settles. This feature generally comes with a fee typically calculated as a percentage of your loan amount (ranging from 0.15% to 0.20%). Based on Money.com.au’s analysis, most lenders will allow you to lock your rate for up to 90 days.

An offset account is a transaction account linked to your home loan that offsets your loan balance so you pay less interest. Partial offset accounts (where only a percentage of your loan balance and interest is offset) are more common with fixed rate home loans than full offset accounts where every dollar goes towards offsetting your interest.

Some fixed rate home loans allow additional repayments up to a specified limit. According to Money's analysis of various fixed rate loan products, some lenders may permit extra repayments of up to $10,000 or $20,000 annually.

Some fixed loans come with a redraw facility. This feature allows you to withdraw additional repayments you've made on your mortgage. However, in most cases, redraw is only available at the end of the fixed rate period (i.e. when you roll onto a variable rate).

Some fixed rate home loans allow you to choose your repayment frequency (e.g. weekly, fortnightly, or monthly). Additionally, you could opt for a fixed rate home loan with an interest-only repayment option for a period of time. This is a common option among property investors.

You can split your home loan into fixed and variable portions. This can help you ‘hedge your bets’ and benefit from the certainty of fixed repayments for a portion of your loan and get the flexibility and features of a variable rate loan for the other portion. You can choose the proportions of your split, whether it's 50/50, 60/40, or 70/30.

When should you choose a fixed interest rate?

Here are three scenarios where choosing a fixed rate home loan could be suitable.

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1. Rates are historically low or increasingly volatile, and you want to lock in your current rate

According to Mansour, borrowers tend to fix their home loans when interest rates are low because there's no guarantee that rates will remain at these levels in the future. By locking in a fixed rate, borrowers can secure favourable terms and protect themselves from potential rate increases in the future (at least during the fixed period).

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2. You value the certainty of a fixed repayment amount more than getting the absolute lowest rate

Fixed rate home loans offer stability and predictability in your repayments over the fixed term. If you prefer to know your exact repayment amount each month and avoid fluctuations in your budget, a fixed rate loan can be an attractive option. For example, some borrowers with tight financial constraints (e.g. retirees, first-home buyers) may prefer the certainty of a fixed rate over the lowest available variable rate. In some cases, the fixed rate could also be the lowest rate.

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3. You’re an investor looking to manage cash flow

Fixed rate mortgages offer predictability in monthly repayments, making it easier for investors to forecast cash flow and plan their finances, particularly if they have investment properties generating rental income. Investors with multiple rental properties may choose fixed rates to mitigate interest rate fluctuations impacting their portfolio.

How to compare fixed home loans

1

Focus on the interest rate (the comparison rate could be a red herring)

The comparison rate is designed to reflect the total annual cost of a mortgage — including interest and fees. But this calculation is based on a 25-year loan term, which will be long after your fixed rate term expires. The comparison rate will therefore be based partly on the fixed rate and the variable rate your loan would roll onto by default at the end of the fixed term. That rollover rate is generally not the most competitive variable rate available. So, in the case of fixed rate home loans, the advertised interest rate may be more practical for comparing your options.

2

Consider which fixed loan term is appropriate for you

Compare different loan terms offered by lenders and consider whether you prefer a shorter-term fixed rate or the certainty of locking in your rate for a longer period. For example, borrowers who plan to sell their property or refinance within a few years may opt for a shorter fixed rate, while borrowers who can find a competitive rate on a longer fixed term may be happy to ‘set and forget’ for 4-5 years.

3

Check out the home loan fees

Over time, home loan fees can add up to around 1% of your initial loan amount, sometimes more. In addition to standard fees like application fees, monthly fees and annual package fees, some lenders may also charge a ‘rate lock’ fee. This fee applies if you want to lock in your fixed rate before your loan application is approved to avoid a rate hike. You’ll also pay break fees if you repay your fixed rate loan early or refinance.

4

Shop around for home loan features

Fixed rate home loans generally have fewer features than variable loans, but you may be able to find lenders that allow you to make extra repayments up to a limit. Some fixed rate home loans also come with a redraw facility or offset account.

Home loans guides & resources

What's the next step on your property journey? Our home loan guides will help you navigate the road ahead, whether you're buying, building or looking to save on an existing loan.

FAQs about fixed rate home loans

Lenders and the big four banks typically offer fixed rates on both owner-occupier and investor home loan products. The minimum eligibility requirements include:

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  • Australian citizenship or permanent residency (or married or in a de facto relationship with an Australian citizen or permanent resident)
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  • You must be over 18 years of age
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  • Meet the lender’s minimum income criteria
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  • Have a minimum 5-10% house deposit or equivalent equity to contribute towards the purchase

Fixed rate mortgage

The interest rate on your home loan is fixed for a period of time (1-5 years typically). This means your repayments stay the same during the fixed rate term, protecting you from rate hikes.

However, fixed rate home loans may not have features like a redraw facility and there may be restrictions (and fees incurred) on additional repayments above a nominated limit. It’s important to note that exiting a fixed rate loan (i.e. refinancing) before the fixed period ends will typically mean incurring penalties.

Variable rate mortgage

The interest rate and repayments on a variable rate home loan can fluctuate — normally in line with changes to Australia’s official cash rate.

Variable rate home loans generally offer flexibility to make unlimited extra payments to help you pay off your mortgage faster. They also often include features such as offset accounts and redraw facilities. There are no penalties for paying off a variable loan early or switching to a fixed or split home loan.

You generally can’t refinance before your fixed period ends without incurring some break costs. Depending on your loan amount and your remaining fixed term, this could amount to hundreds or thousands of dollars in break costs.

In addition, lenders like ANZ and Bankwest take into account how much market rates have moved since the start of your fixed rate period when calculating break fees. Bankwest provides an example where they calculate break costs for a loan principal of $300,000, with two years remaining of the fixed rate period to potentially amount to $15,000. You may also incur refinancing fees, including discharge fees for your existing fixed loan and establishment fees for your new loan.

That’s why you should consider break fees and other associated expenses before switching from a fixed rate home loan. Depending on your loan amount and your remaining fixed term, you may find it will be cheaper to wait until your fixed period ends.

On the other hand, you may find that switching now could save you more over the long term — either because you’ve secured a more competitive interest rate (and your repayments are significantly lower) or got access to features that can help you save on interest (like a 100% offset account).

With an interest-only home loan, your minimum repayments only cover the interest charged on your loan (not the initial sum you borrowed, known as your loan principal) for a set period. This lowers your mortgage repayments during that period, but it means you'll pay more interest over the life of the loan.

If you choose a fixed rate interest-only home loan, your fixed period and interest only period will be the same. These types of loans are popular among investors because they have less incentive to pay down the loan principal since interest payments on investment loans may be fully tax deductible, according to the Australian Taxation Office (ATO).

Generally, you can choose to fix your home loan for one to five years. Some lenders, like ANZ and RAMS, offer fixed rate home loans for up to 10 years.

Read our guides on:

Megan is a finance writer with more than 10 years of experience in the industry. She’s passionate about helping people make sense of financial topics and principles. She's certified in Finance & Mortgage Broking and is compliant to provide general advice in Tier 1 General Insurance.

Mansour Soltani is Money.com.au’s home loans expert. He’s a mortgage broker with more than 20 years of experience in the finance and real estate industry. Mansour is the Director of Soren Financial and has been featured in publications such as the ABC, Domain.com.au and Australian Broker.

Important information

Home loan comparison rates are calculated based on a loan amount of $150,000 repaid over a 25-year term with monthly repayments. The comparison rates only apply to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you.

General information only

The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any home loan product is suitable for you and seek independent financial advice if necessary.

We are not providing you with a recommendation or suggestion about a particular home loan. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to use a particular product.

What products, features and information are shown

While we make every effort to ensure all home loans available in Australia are shown in our comparison tables, we do not guarantee that all products are included.

Our product comparisons may not compare all home loan features and attributes relevant to you.

Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the lender.

How home loans are sorted and filtered by default

Users can easily change the sort order and apply product filters to our product comparison tables. However, when you arrive on a page initially, by default home loans are sorted by:

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  • Lowest regular repayment amount, then;
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  • Loans interest rate, then;
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  • Lowest comparison rate, then;
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  • Provider name (A-Z)

Some home loan products listed in our tables are available through a mortgage broker. These are the products with an option to ‘Check Eligibility on Money.com.au’. Mortgage brokers may not be able to offer loans from every provider and there may be more suitable loans for your personal circumstances.

Mortgage brokers are not authorised by Money's Australian Credit Licence and operate under their own Australian Credit Licence, or as a credit representative of another Australian Credit Licensee. Mortgage brokers can make recommendations about home loan products that may suit your objectives, financial situation and needs.

Our tables feature all home loans available from lenders on our database that match the search criteria selected. Lenders do not pay to feature in our tables, nor do we earn commission if you click to visit a lender’s website. The order of the products in the table is not influenced by any commercial arrangements.

If you get help from a mortgage broker as a result of visiting this page, we may earn a commission.

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Money Pty Ltd (trading as Money) (ABN 42 626 094 773) Australian Credit Licence 528698 provides information about credit products. Money does not compare all products or issuers available in Australia. We are not a broker or credit provider and when we provide information via this website, we are not providing you with a recommendation or suggestion about a particular credit product. We may receive a commission when you apply for a home loan as a result of outbound links on this website.

This material has been prepared by Money Pty Limited (ABN 40 664 954 536) (Money, ‘us’ or ‘we’). Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C). The material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Money, any of their related body corporates or any other person. To the maximum extent possible, 62C, Money, their related body corporates or any other person do not accept any liability for any statement in this material.

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Assumptions:

  • The calculations do not account for changes in interest rates or other market conditions that may occur.
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