Compare 1 year fixed mortgages
Find home loans from a wide range of Australian lenders that best suit your needs, whether you're investing, refinancing or looking to buy your first home. Compare interest rates, mortgage repayments, fees and more.
Find and compare 1 year fixed home loans
Fixed - 1 year
Borrow up to 79.9999%
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Fixed - 1 year
Borrow up to 80%
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What does it mean to fix your home loan?
Fixing your home loan has nothing to do with repairing something broken. Instead, it refers to locking in your home loan interest payments at a set rate. As this rate is “fixed”, it won’t increase or decrease for a limited time, no matter what your bank does with its variable rates.
Some borrowers fix their home loan in order to lock in a low rate, and potentially save some money on their monthly mortgage repayments if variable interest rates rise. Others choose fixed rate home loans to keep their mortgage payments consistent, for simpler budgeting.
You may have the option to fix your interest rate for different lengths of time, often somewhere between one and five years, before it will revert to a variable rate.
Why fix your rate for just one year?
So, if fixing your home loan’s interest rate means locking in a low rate for a limited time, why wouldn’t you try to fix your rate for as long as possible? This would let you enjoy the benefits of a low interest rate and consistent repayments for the longest length of time, right?
Fixed rate home loans are typically set for 2- or 3-year terms. However, some lenders offer fixed home loans up to 5-, 7- and even 10-years. However, there are also potential benefits for shorter fixed rate terms.
Fixing your home loan’s interest rate for a longer term of three years, five years, or sometimes even longer can be useful to some borrowers under the right circumstances. However, there are also potential benefits for shorter fixed rate terms.
It’s important to remember that while fixing your rate can protect you from higher repayments if rates rise, it can also mean missing out on interest savings if your lender cuts its variable rates. The longer your interest rate stays fixed, the longer you may be stuck paying a higher rate if your lender was to keep lowering its variable rates.
Fixed rate home loans are often less flexible than variable rate options and may not offer as many features. The longer you keep your rate fixed, the longer you may miss out on benefiting from extra repayments, a redraw facility, an offset account, or other flexible features and benefits.
If you have a home loan with a fixed interest rate, then later decide you want to refinance with another bank or mortgage lender, you may need to pay break fees if you do so during your fixed rate period. The more time is left to run on your fixed-rate term, the more you may need to pay in home loan break costs if you refinance. This can make refinancing to a cheaper interest rate cost much more than you expect, meaning it will take longer for the value of any interest savings to make up for these extra costs.
Some borrowers choose to fix their home loan for a shorter term, such as just the one year, so they can benefit from consistent repayments in the short term but have easier access to other options later on. In some cases, your lender may let you re-fix your interest rate after the 12 months are up, if you’d like to keep making fixed repayments for longer. Just remember that you may not always be able to re-fix at the same rate, and you won’t be able to fix your rate indefinitely – at some point your loan will revert to a variable interest rate.
Is there a calculator to help work out the cost of fixing your home loan for one year?
You can use a home loan calculator to estimate the repayments for a fixed rate home loan. As this rate will stay the same for the duration of your fixed term, you can confidently plan your household budget in advance, knowing that your mortgage repayments shouldn’t change during this time.
However, things can get a little trickier after your fixed term expires and your loan switches over to your lender’s revert rate. This is often the bank’s standard variable interest rate, which may be higher than its fixed rate. While you can use a home loan calculator to estimate the cost of mortgage payments at this higher rate, remember that variable rates may rise or fall, changing the cost of your future loan repayments, and making it harder to calculate your loan’s total cost in advance.
Also, keep in mind that it’s not just interest payments that you’ll need to consider when calculating the cost of a home loan. There may also be upfront fees and other ongoing charges to consider. When you’re comparing different home loans, to get a better idea of their overall cost, consider checking the comparison rate, which bundles the cost of interest charges and standard fees into a single figure.
If you’re not sure whether a fixed rate home loan may be right for you, one possible alternative is a split rate home loan. In this arrangement, interest is charged on part of your home loan balance at a variable rate, and on the other part at a fixed rate. This can let you enjoy some of the benefits from both types of home loans, at least until the fixed rate expires and that portion of your loan reverts to a variable rate.
Property Personal Finance Writer
A property and personal finance writer, Nick Bendel covers property, loans, credit cards, superannuation, and other bank products. Nick has previously written for The Adviser, Mortgage Business, Lifehacker, Business Insider, Yahoo Finance, and InvestorDaily, and loves getting elbow-deep in the latest ABS, APRA and RBA data.
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Frequently asked questions
Remaining loan term
The length of time it will take to pay off your current home loan, based on the currently-entered mortgage balance, monthly repayment and interest rate.
Your current monthly home loan repayment. To accurately calculate how much you could save, an accurate payment figure is required. If you are not certain, check your bank statement.
Your current home loan interest rate. To accurately calculate how much you could save, an accurate interest figure is required. If you are not certain, check your bank statement or log into your mortgage account.
What is a fixed home loan?
A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.
The amount you currently owe your mortgage lender. If you are not sure, enter your best estimate.
How can I get ANZ home loan pre-approval?
Shopping for a new home is an exciting experience and getting a pre-approval on the loan may give you the peace of mind that you are looking at properties within your budget.
At the time of applying for the ANZ Bank home loan pre-approval, you will be required to provide proof of employment and income, along with records of your savings and debts.
An ANZ home loan pre-approval time frame is usually up to three months. However, being pre-approved doesn’t necessarily mean you will get your home loan. Other factors could lead to your home loan application being rejected, even with a prior pre-approval. Some factors include the property evaluation not meeting the bank’s criteria or a change in your financial circumstances.
You can make an application for ANZ home loan pre-approval online or call on 1800100641 Mon-Fri 8.00 am to 8.00 pm (AEST).
Select a number of years to see how much money you can save with different home loans over time.
e.g. To see how much you could save in two years by switching mortgages, set the slider to 2.
How personalised is my rating?
Real Time Ratings produces instant scores for loan products and updates them based what you tell us about what you’re looking for in a loan. In that sense, we believe the ratings are as close as you get to personalised; the more you tell us, the more we customise to ratings to your needs. Some borrowers value flexibility, while others want the lowest cost loan. Your preferences will be reflected in the rating.
We also take a shorter term, more realistic view of how long borrowers hold onto their loan, which gives you a better idea about the true borrowing costs. We take your loan details and calculate how much each of the relevent loans would cost you on average each month over the next five years. We assess the overall flexibility of each loan and give you an easy indication of which ones are likely to adjust to your needs over time.
Do other comparison sites offer the same service?
Real Time RatingsTM is the only online system that ranks the home loan market based on your personal borrowing preferences. Until now, home loans have been rated based on outdated data. Our system is unique because it reacts to changes as soon as we update our database.
How does Real Time Ratings work?
Real Time RatingsTM looks at your individual home loan requirements and uses this information to rank every applicable home loan in our database out of five.
This score is based on two main factors – cost and flexibility.
Cost is calculated by looking at the interest rates and fees over the first five years of the loan.
Flexibility is based on whether a loan offers features such as an offset account, redraw facility and extra repayments.
Real Time RatingsTM also includes the following assumptions:
- Costs are calculated on the current variable rate however they could change in the future.
- Loans are assumed to be principal and interest
- Fixed-rate loans with terms greater than five years are still assessed on a five-year basis, so 10-year fixed loans are assessed as being only five years’ long.
- Break costs are not included.
What fees are there when buying a house?
Buying a home comes with ‘hidden fees’ that should be factored in when considering how much the total cost of your new home will be. These can include stamp duty, title registration costs, building inspection fees, loan establishment fee, lenders mortgage insurance (LMI), legal fees and bank valuation costs.
Some of these fees can be taken out of the mix, such as LMI, if you have a big enough deposit or by asking your lender to waive establishment fees for your loan. Even so, fees can run into the thousands of dollars on top of the purchase price.
Keep this in mind when deciding if you are ready to make the move in to the property market.
What is the flexibility score?
Today’s home loans often try to lure borrowers with a range of flexible features, including offset accounts, redraw facilities, repayment frequency options, repayment holidays, split loan options and portability. Real Time Ratings™ weights each of these features based on popularity and gives loans a ‘flexibility score’ based on how much they cater to borrowers’ needs over time. The aim is to give a higher score to loans which give borrowers more features and options.
How can I avoid mortgage insurance?
Lenders mortgage insurance (LMI) can be avoided by having a substantial deposit saved up before you apply for a loan, usually around 20 per cent or more (or a LVR of 80 per cent or less). This amount needs to be considered genuine savings by your lender so it has to have been in your account for three months rather than a lump sum that has just been deposited.
Some lenders may even require a six months saving history so the best way to ensure you don’t end up paying LMI is to plan ahead for your home loan and save regularly.
Tip: You can use RateCity mortgage repayment calculator to calculate your LMI based on your borrowing profile
What is upfront fee?
An ‘upfront’ or ‘application’ fee is a one-off expense you are charged by your bank when you take out a loan. The average start-up fee is around $600 however there are over 1,000 loans on the market with none at all. If the loan you want does include an application fee, try and negotiate to have it waived. You’ll be surprised what your bank agrees to when they want your business.
What is a cooling-off period?
Once a home loan’s contracts are exchanged between the borrower and the lender, a five-day cooling-off period follows, during which the contracts may be cancelled if needed.
What is a standard variable rate (SVR)?
The standard variable rate (SVR) is the interest rate a lender applies to their standard home loan. It is a variable interest rate which is normally used as a benchmark from which they price their other variable rate home loan products.
A standard variable rate home loan typically includes most, if not all the features the lender has on offer, such as an offset account, but it often comes with a higher interest rate attached than their most ‘basic’ product on offer (usually referred to as their basic variable rate mortgage).
What is appraised value?
An estimation of a property’s value before beginning the mortgage approval process. An appraiser (or valuer) is an expert who estimates the value of a property. The lender generally selects the appraiser or valuer before sanctioning the loan.
How much is the first home buyer's grant?
The first home buyer grant amount will vary depending on what state you’re in and the value of the property that you are purchasing. In general, they start around $10,000 but it is advisable to check your eligibility for the grant as well as how much you are entitled to with your state or territory’s revenue office.
How can I get a home loan with bad credit?
If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.
One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.
Two points to bear in mind are:
- Many home loan lenders don’t provide bad credit mortgages
- Each lender has its own policies, and therefore favours different things
If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.
Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:
- You have a secure job
- You have a steady income
- You’ve been reducing your debts
- You’ve been increasing your savings
How can I calculate interest on my home loan?
You can calculate the total interest you will pay over the life of your loan by using a mortgage calculator. The calculator will estimate your repayments based on the amount you want to borrow, the interest rate, the length of your loan, whether you are an owner-occupier or an investor and whether you plan to pay ‘principal and interest’ or ‘interest-only’.
If you are buying a new home, the calculator will also help you work out how much you’ll need to pay in stamp duty and other related costs.