Find and compare fixed rate home loans

Sort By
Advertised Rate

2.55%

Fixed - 1 year

Comparison Rate*

3.21%

Company
Adelaide Bank
Repayment

$638

monthly

Features
Redraw facility
Offset Account
Borrow up to 79.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.48

/ 5
Go to site
More details
Product
Advertised Rate

2.79%

Fixed - 3 years

Comparison Rate*

4.46%

Company
CUA
Repayment

$698

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.71

/ 5
Go to site
More details
Advertised Rate

2.09%

Fixed - 3 years

Comparison Rate*

2.43%

Company
Macquarie Bank
Repayment

$1,285

monthly

Features
Redraw facility
Offset Account
Borrow up to 70%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

4.11

/ 5
Go to site

Winner of Best 3 year fixed pi, RateCity Gold Awards 2021

More details
Advertised Rate

1.99%

Fixed - 5 years

Comparison Rate*

3.34%

Company
Newcastle Permanent
Repayment

$1,270

monthly

Features
Redraw facility
Offset Account
Borrow up to 95%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

4.54

/ 5
Go to site
More details
Advertised Rate

1.89%

Fixed - 1 year

Comparison Rate*

3.51%

Company
Greater Bank
Repayment

$1,256

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.76

/ 5
Go to site
More details
Advertised Rate

2.04%

Fixed - 2 years

Comparison Rate*

2.79%

Company
Virgin Money
Repayment

$1,277

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.38

/ 5
Go to site
More details
Advertised Rate

2.29%

Fixed - 5 years

Comparison Rate*

2.73%

Company
Virgin Money
Repayment

$1,314

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

3.72

/ 5
Go to site
More details
Advertised Rate

2.28%

Fixed - 2 years

Comparison Rate*

3.94%

Company
Newcastle Permanent
Repayment

$1,313

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.83

/ 5
Go to site
More details
Advertised Rate

2.29%

Fixed - 3 years

Comparison Rate*

2.65%

Company
UBank
Repayment

$1,314

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.51

/ 5
Go to site
More details

Learn more about home loans

What is a fixed rate home loan?

Some lenders allow you to fix the interest rate on your mortgage for a limited time, so you can enjoy greater financial security and stability, as well as simpler budgeting. Like a rate lock, a fixed rate home loan will have a set interest rate for a chosen period of time, typically 2-3 years. 

Why a fixed interest rate?

Are you a first-home buyer, someone looking to refinance, or a long time property investor? Whatever your home loan purpose, you'll need to make a decision around which loan repayment type best suits your financial situation. 

By choosing a fixed loan, you’ll know in advance just how much your mortgage repayments will cost from month to month for the duration of the fixed term. Even if your lender raises its variable interest rates, your home loan’s fixed repayments will remain just as affordable during the fixed term.

On the other hand, if your bank cuts variable home loan rates, this won’t apply to your fixed rate home loan – you’ll keep making the same interest payments until your fixed term ends. Also, fixed rate loans are more likely to lock you into a fixed repayment plan compared to a variable rate home loan, with significant break fees if you change your loan terms before the fixed period is up. You may not be able to choose between monthly repayments or fortnightly repayments, as a shorter repayment period typically means less interest repayments over time. 

Most home loan interest rates can only be fixed for a limited number of years, and afterwards will revert to the lender’s standard variable rate. If you don’t plan your budget accordingly, you could find yourself surprised by a sudden jump in repayments, especially if interest rates rose significantly during your loan’s fixed term.  

The most common fixed loan terms are two-year and three-year loans. However, fixed home loan rate terms can be as short as one year, and climb as high as five years, even ten years in some cases.

Fixed interest rate pros and cons

Pros
  • Consistent repayments each month
  • Simplified budgeting
  • "Secured loans" - protected from interest rate rises
Cons
  • No benefit from interest rate cuts
  • Less repayment flexibility
  • Costly break fees

Should you split your rate?

If you want the security of a fixed rate home loan, but would also appreciate the flexibility of a variable home loan interest rate, you may be able to get the best of both worlds with a split loan. 

These mortgages charge a fixed rate of interest on a percentage of your loan’s balance, and a variable rate on the remainder, so you can enjoy some savings when interest rates are cut, but keep your repayments manageable if rates rise.  

What are comparison rates?

Before you fire up the loan application, you'll want to ensure you do your research around which fixed rate home loan best suits you. 

Most lenders not only charge interest on their mortgages, but fees as well. These may include upfront fees like application fees, as well as ongoing fees like annual fees, late payment fees and fees for making extra repayments. 

Whatever the loan offer is, if the lender also charges high fees you may ultimately end up paying more for your property than if you’d opted for a mortgage with a higher interest rate and lower fees and charges.

To help show the overall cost of different loans more clearly, lenders are required to display Comparison Rates alongside their advertised interest rates. These percentage figures combine the overall cost of each loan’s interest rate and its standard fees and charges, and can be used to approximately gauge the relative affordability of different loans.

It’s worth remembering that some loans also have nonstandard costs that aren’t included in their Comparison Rates, and that Comparison Rates also don’t account for any bonus features that could add extra value to certain loans. It’s usually worth doing some further research after narrowing down your shortlist of mortgage options by their comparison rates.

For a full breakdown of any potential fixed rate home loan costs, it's worth reading the product disclosure statement for your chosen home loan. This should be available on your lenders' website.

How your loan term affects your interest

The length of the fixed-rate period on your home loan is important, as this is the length of time that your repayments will remain unaffected by rate rises. But it’s also important to think about the overall length of your home loan’s term, as this can affect how much interest you’ll pay in total over the lifetime of the loan.

Most mortgages start with a term of 25 or 30 years, though shorter and longer options are available from some lenders. If you choose a shorter home loan, you’ll make a smaller number of repayments, each one for a larger percentage of the loan’s principal. While a short home loan may cost you more from month to month, fewer repayments also means fewer interest charges, so you’ll likely pay less interest in total over the lifetime of the loan.

It's also crucial you think about both the principal & interest of your loan. Stretching out your home loan over a longer term means making more repayments, each one for a smaller percentage of the principal. Meaning the total loan amount is increased over time. While each of these repayments may be more affordable from month to month, you’ll be charged interest a greater number of times, and may ultimately end up paying more in total interest than if you’d opted for the shorter loan term.

Fixed rate home loans for different buyers

First home buyers often find the security of fixed rate home loans appealing, as their stability over the first few years of a mortgage can help borrowers keep their finances under control while they build up their equity.

Investors can also find the stability of fixed rate home loans useful, as they can help keep the loan’s repayments from increasing beyond the property’s rental income during the fixed period, ensuring a steady stream of income from the investment.

In either case, borrowers should remember that when their fixed rates expire, they will revert to the lender’s standard variable rates – be sure to budget accordingly!

Refinancing a mortgage to a new low rate lender can help to reduce your repayments, making your loan more affordable. If your lender lets you fix this interest rate for a few years, you can keep enjoying this extra affordability for longer. This can be good news for both investors and owner occupiers, especially those who are buying a new home. Further, if you're a refinancer who's built up a bit of equity in their home, your loan to value ratio (LVR) will now hopefully be a little lower. Borrowers with lower LVRs typically qualify for those great rates reserved for the safest of applicants.

Fixed home loan features

Fixing the interest rate on a home loan often also means agreeing to a fixed repayment plan, where you’re required to make your scheduled repayments for the duration of the fixed rate period. This may limit your ability to pay extra money onto your mortgage and get ahead on your repayments, even if the money becomes available from a tax refund, a work bonus, or a statistically-improbable lottery win.

But some lenders allow borrowers to freely make extra repayments onto their fixed rate home loans, and a few even offer some additional features to help provide further financial flexibility.

A free redraw facility will allow you to make withdrawals from the surplus balance on your home loan when you get ahead on your repayments, subject to your lender’s terms and conditions. This means that if you have spare savings available, you can add them onto your mortgage to reduce your interest charges and get closer to making an early exit from the loan, confident that you can still put this money back in your pocket again in case of emergency.

An offset account works just like a regular savings or transaction account, but with one major difference – it’s linked to your mortgage. Whatever money you pay into an offset account is included when your lender calculates its interest charges, which can help save you money on your mortgage.

You may also find interest rates are higher when you choose a home loan package, including linked credit cards, transaction accounts and/or a line of credit from the lender.

Compare fixed rate home loans

With a variety of fixed rate home loan options available to choose from, what is the best way to make your mortgage decision? While low interest rates are important to consider when looking at any home loan, there are also comparison rates, terms and conditions to keep in mind.

Always ensure you read the product disclosure statement of any home loan before applying, and ensure you meet any eligibility criteria required for the lender.

RateCity provides you with the essential details of Australia’s many fixed rate mortgages, and puts them all in one place for simple and efficient reference. With the help of this information, you can determine which lenders offer the interest rates and home loan features, such as the ability to make additional repayments, that best match your financial situation, and make a more informed decision when selecting your next mortgage lender. 

If you're looking for more help finding a fixed rate home loan that best suits your financial situation, it may be worth reaching out to a mortgage broker for additional help and  information.

Frequently asked questions

What is the difference between fixed, variable and split rates?

Fixed rate

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.

Variable rate

A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.

Split rates home loans

A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.

What is the difference between a fixed rate and variable rate?

A variable rate can fluctuate over the life of a loan as determined by your lender. While the rate is broadly reflective of market conditions, including the Reserve Bank’s cash rate, it is by no means the sole determining factor in your bank’s decision-making process.

A fixed rate is one which is set for a period of time, regardless of market fluctuations. Fixed rates can be as short as one year or as long as 15 years however after this time it will revert to a variable rate, unless you negotiate with your bank to enter into another fixed term agreement

Variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts however fixed rates do offer customers a level of security by knowing exactly how much they need to set aside each month.

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.

What is the difference between offset and redraw?

The difference between an offset and redraw account is that an offset account is intended to work as a transaction account that can be accessed whenever you need. A redraw facility on the other hand is more like an “emergency fund” of money that you can draw on if needed but isn’t used for everyday expenses.

How does an offset account work?

An offset account functions as a transaction account that is linked to your home loan. The balance of this account is offset daily against the loan amount and reduces the amount of principal that you pay interest on.

By using an offset account it’s possible to reduce the length of your loan and the total amount of interest payed by thousands of dollars. 

Example: If you have a mortgage of $500,000 but holding an offset account with $50,000, you will only pay interest on $450,000 rather then $500,000.

What happens to my home loan when interest rates rise?

If you are on a variable rate home loan, every so often your rate will be subject to increases and decreases. Rate changes are determined by your lender, not the Reserve Bank of Australia, however often when the RBA changes the cash rate, a number of banks will follow suit, at least to some extent. You can use RateCity cash rate to check how the latest interest rate change affected your mortgage interest rate.

When your rate rises, you will be required to pay your bank more each month in mortgage repayments. Similarly, if your interest rate is cut, then your monthly repayments will decrease. Your lender will notify you of what your new repayments will be, although you can do the calculations yourself, and compare other home loan rates using our mortgage calculator.

There is no way of conclusively predicting when interest rates will go up or down on home loans so if you prefer a more stable approach consider opting for a fixed rate loan.

What is a variable home loan?

A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.

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 a honeymoon rate and honeymoon period?

Also known as the ‘introductory rate’ or ‘bait rate’, a honeymoon rate is a special low interest rate applied to loans for an initial period to attract more borrowers. The honeymoon period when this lower rate applies usually varies from six months to one year. The rate can be fixed, capped or variable for the first 12 months of the loan. At the end of the term, the loan reverts to the standard variable rate.

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).

Monthly Repayment

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.

Savings over

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.

Interest Rate

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 split home loan?

A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.

Who has the best home loan?

Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.

To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you. 

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.

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.

Tip: you can calculate your stamp duty costs as well as LMI in Rate City mortgage repayments calculator

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.