Fixed Rate Home Loans | Savings.com.au

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Whether you’re looking to buy your first home, buy another for your family, or refinance your current home loan for better value, Savings.com.au has compiled some of the lowest fixed interest rates available on the market. this month for both homeowners and investors. We’ll compare some of the lowest fixed mortgage rates available for:

Compare home loans with fixed rates

Here’s a look at some of the lowest fixed home loan rates from various lenders.

Lender

Rate Type Gap Redraw Ongoing charges The initial costs LVR Lump sum reimbursement Additional refunds Pre-approval

Fixed More details
USE AN INDUSTRY-LEADING APP TO HELP YOU PAY OFF YOUR LOAN EARLIER

Fixed mortgage 1 year (capital and interest) (LVR
  • Make up to $20,000 in additional repayments per fixed term
  • Redraw available – allows you to access any additional loan repayments you have made
  • Choose to lock rates for 90 days (fees apply)

Fixed More details
No ongoing feesFree redraw function

Fixed rate loan (capital and interest) 1 year

Fixed More details
NO INITIAL OR ON-GOING FEES

Fixed Base Mortgage (Principal and Interest) (LVR

Fixed More details

4-year fixed rate investment loan (LVR 80%-90%)

Fixed More details

2-year fixed-rate mortgage (LVR)

Fixed More details

Tailor-made investment loan Fixed (capital and interest) 5 years

Fixed More details

1 year fixed mortgage (capital and interest) (LVR 80%-85%)

Fixed More details

Wealth Pack Fixed Rate Mortgage Loan (Capital and Interest) 1 year

Fixed More details

Mortgage loan with fixed options (capital and interest) 5 years (LVR

Fixed More details

Fixed rate mortgage (interest only) 4 years (LVR > 80%)

Fixed More details

2-year fixed investment loan (principal and interest) (LVR
  • Make up to $20,000 in additional repayments per fixed term
  • Redraw available – allows you to access any additional loan repayments you have made
  • Choose to lock rates for 90 days (fees apply)

Fixed More details

Fixed mortgage 5 years (capital and interest) (LVR
  • Simple and digital application process
  • Market-leading app to help you pay off your loan faster
  • No ongoing fees

Basic criteria: a loan amount of $400,000, variable, fixed, principal and interest (P&I) real estate loans with an LVR (loan-to-value) ratio of at least 80%. However, the “Compare mortgages” table allows calculations to be made on the variables selected and entered by the user. All products will list the LVR with the product and price list which is clearly published on the product supplier’s website. Monthly repayments, once the basic criteria are modified by the user, will be based on the advertised prices of the selected products and determined by the loan amount, the repayment type, the loan term and the LVR as entered by the user. user/you. *The comparison rate is based on a loan of $150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of January 20, 2022. See disclaimer.

So is this the right time to set your rate?

This is a difficult question to answer, as choosing between a fixed or variable interest rate depends on your own circumstances as well as the broader economic environment. For example, it might be a bad idea to fix your interest rate if:

  • Interest rates go down
  • You don’t want to be stuck with a particular lender (switching from a fixed rate incurs high exit fees)
  • You like the flexibility in a loan (many don’t allow extra repayments or extra features)
  • You plan to quickly flip the house within the fixed rate period

Mortgage Choice CEO Susan Mitchell said Savings.com.au that fewer borrowers are now fixing their interest rates due to the Reserve Bank’s recent rate cuts in 2019, saying that “our home loan approval data shows that demand for fixed rate home loans has fallen since the back-to-back RBA cash rate cuts in June and July.”

But from 2021, fixed rate loans have seen growing popularity, with the majority of interest rate cuts from banks and lenders going to fixed rate loans. This is especially true among loans below the 2% per annum benchmark.

If you want secure repayments and a no-frills base interest rate that is also quite low for a short time, then a fixed loan might be the right option for you.

“Fixed rate home loans are a good idea if you want certainty for your home loan repayments, as you may be facing budget constraints or expect a change in your cash flow and want more control over your finances” , said Ms. Mitchell.

“I think we often fall into the trap of looking for the lowest interest rate and although that is an important part of the decision when choosing a home loan, the lender’s policy, loan structure and features should not be overlooked.

“For example, a borrower may benefit from a withdrawal facility or clearing account, features that come at a cost but could benefit the borrower over time. It should also be noted that not all borrowers will qualify for the lowest market rate. »

For more information, see our article “Should you fix your interest rate”. You can also consider a split home loan if you want the best of both types of interest rates.

The two cents from Savings.com.au

Although becoming less popular in a low rate environment, fixed rate home loans are still a viable option for many homebuyers. Just be sure to consider your financial situation before committing to a fixed rate loan, because you don’t want to make the wrong choice.

If you are looking for a good low rate fixed loan, these home loans could be a good place to start. You can also keep up to date with the latest home loan rate movements by visiting our home loan news page.

Looking for different products and fixed rate lenders?


Frequently Asked Questions

If you pay off your fixed rate home loan before the end of the fixed term, you will have to pay termination fees which can cost thousands of dollars. Other administration fees may also apply. If you want the freedom to pay off your mortgage early, a fixed rate mortgage may not be the best option for you.

A variable rate home loan, on the other hand, is a home loan where your interest rate will change based on market changes. So if you have a home loan with a variable interest rate of 2.50% per year and your lender decides to lower rates by 25 basis points, your home loan rate should now be 2.25% per year.

Although variable rate mortgages have a higher degree of uncertainty than fixed mortgages, they may be cheaper for you, especially at a time when rates are steadily falling. They also tend to have attractive features like the ability to make additional repayments, clear accounts, and redesign facilities, which most fixed loans don’t allow.

See our article on fixed and variable rates to learn more about which one you should choose and see what the current interest rates are to give you an idea of ​​whether they could go up or down.

A fixed interest rate, as the name suggests, fixes the interest rate you pay in place for the duration of the specified term. For example, a fixed interest rate of 2.50% per year for three years will remain at this rate of 2.50% per year for three years. all the same economic pressures or lender needs, before reverting to a standard variable rate.

Cash flow certainty is arguably the biggest benefit of a fixed rate loan. Your repayments staying the same for a known period of time can make budgeting easier because you know exactly how much your repayments will be. This often makes fixed rate home loans popular with investors and first-time buyers in the first two or three years they own a property.

Of course, this can also be a disadvantage if interest rates fall. The locked-in nature of a fixed rate home loan means that any reduction in interest rates from a lender for any reason (such as recent cash rate changes) will not be passed on to you, which may lose hundreds if not. Thousands of dollars. Additionally, the variable rate the loan will return to at the end of the fixed rate period (called the return rate) may be significantly higher than some of the lower variable rates on offer, so you may want to consider refinancing another loan. around this time.

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