Showing home loans based on a loan of
$
for
with a deposit of
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™

2.59

/ 5
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More details
Advertised Rate

2.19%

Fixed - 3 years

Comparison Rate*

2.40%

Company
Mortgage House
Repayment

$1,299

monthly

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

2.58

/ 5
Go to site
More details
Advertised Rate

1.99%

Fixed - 4 years

Comparison Rate*

3.45%

Company
Newcastle Permanent
Repayment

$1,270

monthly

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

4.25

/ 5
Go to site
More details
Advertised Rate

2.20%

Fixed - 2 years

Comparison Rate*

2.68%

Company
Adelaide Bank
Repayment

$1,301

monthly

Features
Redraw facility
Offset Account
Borrow up to 94.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.66

/ 5
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More details
Advertised Rate

2.14%

Fixed - 3 years

Comparison Rate*

3.83%

Company
Commonwealth Bank of Australia
Repayment

$1,292

monthly

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

2.88

/ 5
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More details
Advertised Rate

1.88%

Fixed - 2 years

Comparison Rate*

2.86%

Company
HSBC
Repayment

$1,254

monthly

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

4.23

/ 5
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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™

3.92

/ 5
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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™

1.85

/ 5
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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™

4.25

/ 5
Go to site
More details
Advertised Rate

2.24%

Fixed - 5 years

Comparison Rate*

3.66%

Company
NAB
Repayment

$1,307

monthly

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

3.82

/ 5
Go to site
More details
Advertised Rate

2.09%

Fixed - 3 years

Comparison Rate*

2.60%

Company
UBank
Repayment

$1,285

monthly

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

2.89

/ 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 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 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 an interest-only loan? How do I work out interest-only loan repayments?

An ‘interest-only’ loan is a loan where the borrower is only required to pay back the interest on the loan. Typically, banks will only let lenders do this for a fixed period of time – often five years – however some lenders will be happy to extend this.

Interest-only loans are popular with investors who aren’t keen on putting a lot of capital into their investment property. It is also a handy feature for people who need to reduce their mortgage repayments for a short period of time while they are travelling overseas, or taking time off to look after a new family member, for example.

While moving on to interest-only will make your monthly repayments cheaper, ultimately, you will end up paying your bank thousands of dollars extra in interest to make up for the time where you weren’t paying off the principal.

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 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.

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 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.

Does the Home Loan Rate Promise apply to discounted interest rate offers, such as honeymoon rates?

No. Temporary discounts to home loan interest rates will expire after a limited time, so they aren’t valid for comparing home loans as part of the Home Loan Rate Promise.

However, if your home loan has been discounted from the lender’s standard rate on a permanent basis, you can check if we can find an even lower rate that could apply to you.

What is the average length of a home loan?

Most Aussie lenders offer home loans with a 30-year term, meaning that you should pay back the full loan amount and the interest you owe on the amount in 30 years. 

However, home loans can also have a shorter or longer term. They may be as low as ten years or up to 45 years, depending on the product and lender. 

It’s worth remembering that a longer loan term usually means you’ll end up paying a lot more interest in total, but your scheduled repayments may be more manageable. In contrast, you could opt for a shorter loan term if you are comfortable making large repayments in exchange for paying less interest over the term of the 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 comparison rate?

The comparison rate is a more inclusive way of comparing home loans that factors in not only on the interest rate but also the majority of upfront and ongoing charges that add to the total cost of a home loan.

The rate is calculated using an industry-wide formula based on a $150,000 loan over a 25-year period and includes things like revert rates after an introductory or fixed rate period, application fees and monthly account keeping fees.

In Australia, all lenders are required by law to publish the comparison rate alongside their advertised rate so people can compare products easily.

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. 

How do you determine which home loan rates/products I’m shown?

When you check your home loan rate, you’ll supply some basic information about your current loan, including the amount owing on your mortgage and your current interest rate.

We’ll compare this information to the home loan options in the RateCity database and show you which home loan products you may be eligible to apply for.

 

How do I apply for a home improvement loan?

When you want to renovate your home, you may need to take out a loan to cover the costs. You could apply for a home improvement loan, which is a personal loan that you use to cover the costs of your home renovations. There is no difference between applying for this type of home improvement loan and applying for a standard personal loan. It would be best to check and compare the features, fees and details of the loan before applying. 

Besides taking out a home improvement loan, you could also:

  1. Use the equity in your house: Equity is the difference between your property’s value and the amount you still owe on your home loan. You may be able to access this equity by refinancing your home loan and then using it to finance your home improvement.  Speak with your lender or a mortgage broker about accessing your equity.
  2. Utilise the redraw facility of your home loan: Check whether the existing home loan has a redraw facility. A redraw facility allows you to access additional funds you’ve repaid into your home loan. Some lenders offer this on variable rate home loans but not on fixed. If this option is available to you, contact your lender to discuss how to access it.
  3. Apply for a construction loan: A construction loan is typically used when constructing a new property but can also be used as a home renovation loan. You may find that a construction loan is a suitable option as it enables you to draw funds as your renovation project progresses. You can compare construction home loans online or speak to a mortgage broker about taking out such a loan.
  4. Look into government grants: Check whether there are any government grants offered when you need the funds and whether you qualify. Initiatives like the HomeBuilder Grant were offered by the Federal Government for a limited period until April 2021. They could help fund your renovations either in full or just partially.  

What is the Home Loan Rate Promise?

The Home Loan Rate Promise is RateCity putting its money where its mouth is. We believe that too many Australians are paying too much for their home loans. We’re so confident we can help Aussies save money, if we can’t beat your current rate, we’ll give you a $100 gift card.*

There are two reasons it pays to check your rate with the Home Loan Rate Promise:

  • You can find out how much you could save on your home loan by switching to a loan with a lower interest rate
  • If we can’t beat your current rate, you can claim a $100 gift card with our Home Loan Rate Promise*

How do I refinance my home loan?

Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

Can I take a personal loan after a home loan?

Are you struggling to pay the deposit for your dream home? A personal loan can help you pay the deposit. The question that may arise in your mind is can I take a home loan after a personal loan, or can you take a personal loan at the same time as a home loan, as it is. The answer is that, yes, provided you can meet the general eligibility criteria for both a personal loan and a home loan, your application should be approved. Those eligibility criteria may include:

  • Higher-income to show repayment capability for both the loans
  • Clear credit history with no delays in bill payments or defaults on debts
  • Zero or minimal current outstanding debt
  • Some amount of savings
  • Proven rent history will be positively perceived by the lenders

A personal loan after or during a home loan may impact serviceability, however, as the numbers can seriously add up. Every loan you avail of increases your monthly installments and the amount you use to repay the personal loan will be considered to lower the money available for the repayment of your home loan.

As to whether you can get a personal loan after your home loan, the answer is a very likely "yes", though it does come with a caveat: as long as you can show sufficient income to repay both the loans on time, you should be able to get that personal loan approved. A personal loan can also help to improve your credit score showing financial discipline and responsibility, which may benefit you with more favorable terms for your home loan.

How can I apply for a first home buyers loan with Commonwealth Bank?

Getting a home loan requires planning and research. If you are considering a home loan with the Commonwealth Bank, you can find the information you need in the buying your first home section of the bank’s website.

You can see the steps you should take before applying for the loan and use the calculators to work out how much you can borrow, what your monthly repayments would be and the upfront costs you’d likely pay.

You can also book a time with a Commonwealth first home loan specialist by calling 13 2221.

CommBank publishes a property report that may help you understand the real estate market. The bank has also created a CommBank Property App that you can use to search for property.  The link to download this app is available on the same webpage.

If you are eligible for the First Home Loan Deposit Scheme, CommBank will help you process your application. The scheme helps first home buyers to purchase a home with a low deposit. You can read details about this scheme here and speak with a CommBank home lending specialist to understand your options.

Why should I get an ING home loan pre-approval?

When you apply for an ING home loan pre-approval, you might be required to provide proof of employment and income, savings, as well as details on any on-going debts. The lender could also make a credit enquiry against your name. If you’re pre-approved, you will know how much money ING is willing to lend you. 

Please note, however, that a pre-approval is nothing more than an idea of your ability to borrow funds and is not the final approval. You should receive the home loan approval  only after finalising the property and submitting a formal loan application to the lender, ING. Additionally, a pre-approval does not stay valid indefinitely, since your financial circumstances and the home loan market could change overnight.

 

 

Does Westpac offer loan maternity leave options?

Having a baby or planning for one can bring about a lot of changes in your life, including to the hip pocket. You may need to re-do the budget to make sure you can afford the upcoming expenses, especially if one partner is taking parental leave to look after the little one. 

Some families find it difficult to meet their home loan repayment obligations during this period. Flexible options, such as the Westpac home loan maternity leave offerings, have been put together to help reduce the pressure of repayments during parental leave.

Westpac offers a couple of choices, depending on your circumstances:

  • Parental Leave Mortgage Repayment Reduction: You could get your home loan repayments reduced for up to 12 months for home loans with a term longer than a year. 
  • Mortgage Repayment Pause: You can pause repayments while on maternity leave, provided you’ve made additional repayments earlier.

When applying for a home loan while pregnant, Westpac has said it will recognise paid maternity leave and back-to-work salaries. All you need is a letter from your employer verifying your return-to-work date and the nature of your employment. Your partner’s income, government entitlements, savings and investments will may help your application.