Are there any fixed home loan rates that start with a 1?

Couple in kitchen discussing their home loan.

The Reserve Bank of Australia has offered the clearest sign yet that it intends to raise the cash rate, meaning mortgage holders around the country could be looking at a very different interest rate environment in the coming months.

In fact, banks have been anticipating an eventual move by the RBA for a long time now. As a result, most of the fixed rates below 2% p.a. that borrowers once had access to have now disappeared.

This week, the last holdout from the ultra-low fixed rate era — G&C Mutual Bank — raised its 1-year fixed rates from 1.98% p.a. (1.99% p.a. comparison rate*) to 2.89% p.a. (2.94% p.a. comparison rate*). 

While there is one other loan in our database with fixed rates beginning with a 1 — Unity Bank’s 1.84% p.a. (4.05% p.a. comparison rate*) offer on 1-year terms — this is exclusive to first home buyers.

Fixed home loan rates trending upwards

When the RBA last cut rates in November 2020, lenders decided against extending relief to their variable rate customers and opted to slash fixed rates instead.

The big banks led the charge, with CommBank bringing 4-year rates down to 1.99% p.a. (3.66% p.a. comparison rate*) and NAB cutting 4-year rates to 1.98% p.a. (3.69% p.a. comparison rate*).

For a while, borrowers had access to some of the lowest fixed rates on record. But as the RBA’s pandemic era stimulus was unwound and talk of an eventual cash rate hike picked up, banks quickly reversed course.

Fixed rates have been trending upwards for around a year now, but things accelerated in 2022. The graph below shows how the average fixed rate among lenders we track has shot up in the last 12 months.

Average fixed home loan rates

What about variable rates?

While lenders did not decrease variable rates in line with the cash rate the last time the RBA made a move, that’s not to say they haven’t been steadily declining.

In the last 12 months alone, the average variable rate has fallen from 3.29% p.a. to 3.03% p.a. And at the time of writing, there are 17 lenders with variable rates below the 2% p.a. mark in our database.

Right now, lenders understand that reducing variable rates is a good way to get customers in the door while the market is running hot. But borrowers should keep in mind that lenders won’t hesitate to raise them again once the rate cycle turns.

For more information about mortgage and lending trends, head over to our home loan statistics page. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

Home loan comparisons on Mozo - last updated 3 December 2023

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    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.15% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

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    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
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    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

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    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.19% p.a. variable
    6.43% p.a.

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.

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    Variable Rate Home Loan Special Offer

    Package, Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.51% p.a.

    Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.


* WARNING: This comparison rate applies only to the example or examples given. Different 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. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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