Banks cut fixed rates to record breaking lows

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There’s great news for Australian borrowers and refinancers this month with a continuing downward trend in home loan interest rates driven by lenders cutting fixed home loans to all new record-breaking lows.

As home loan competition heats up and property buyers enter the market again in 2021, we’ve seen lenders racing to out-compete each other with jaw-dropping new fixed rates, offering borrowers looking to refinance or buy an owner occupier property the security of a fixed rate from under 2.00% for up to 4 years.

Fixing your home loan is a great way to ensure your regular repayments are predictable, giving you stability and security when it comes to your finances. Shop around and compare some of the top new rates on the market below.


Top Fixed Rate Home Loans

HSBC Discounted Home Value Loan
  • 1.88% fixed rate for 2 years (2.86% comparison rate*)

  • No upfront application or ongoing service fees

  • Bonus $3,288 cashback for refinancers for a limited time

The details:

This cracking new 2 year fixed rate home loan lets you guarantee your monthly repayments while still taking advantage of flexible features like the ability to make free extra repayments up to $10,000 a year and split your loan between fixed and variable rates. What's more, there are no upfront or ongoing fees and you'll get a relationship manager to help you through the application process. Available to borrowers with 20% deposit for loans of $50,000 or more. Plus, refinancers could receive a bonus $3,288 cashback for a limited time(conditions apply).

UBank UHomeLoan
  • 1.95% fixed rate for 3 years (2.27% comparison rate*)

  • Free extra repayments up to $20,000 p.a.

  • Mozo Experts Choice Best Fixed Rate Home Loan 2021

The details:

UBank is the online bank created by NAB to shake things up in the borrowing and savings world, and boy have they succeeded! Bringing to the table super competitive interest rates, zero upfront or ongoing fees and speedy online processes, it’s little wonder UBank has become such a success story. This ultra low 3 year fixed rate home loan is available for loans of $200,000 or more with a minimum deposit of 20%.

Bank of Queensland Discount Fixed Rate
Bank of Queensland
  • 1.89% fixed rate for 2 years (3.05% comparison rate*)

  • Bonus $3,000 cashback for refinancers - Apply by 29th August

  • Mozo Experts Choice Fixed Rate Home Loan 2021

The details:

BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. The BOQ Discounted Fixed Home Loan lets you lock in a super low rate for two years while still having the flexibility to pay down your mortgage faster with free extra repayments of up to $5,000 a year. Plus, refinancers who apply before the 29th of August can score a bonus $3,000 cashback. Minimum loan size $250,000, 80% LVR or less. Smart Booster Home Loan
  • 1.85% discounted variable rate for 2 years

  • Rolls over to low ongoing 2.25% (2.21% comparison rate*)

  • Reverts to low offset variable rate

The details:

This eye catching home loan from popular online lender is the smart way to lock in a great interest rate and pay off your home sooner. With saving at its core, its highlights include; unlimited extra repayments (up to $10,000 per year) and a great low rate that is locked in for 2 years. Plus, there are no ongoing service fees. Available to borrowers with a 20% deposit for loans of up to $1 million.

Newcastle Permanent Special Fixed Rate Home Loan
Newcastle Permanent
  • 1.98% fixed rate for 3 years (3.56% comparison rate*)

  • Free extra repayments and redraw

  • $2000 cashback bonus offer for refinancers

The details:

Enjoy the security of a 3 year fixed rate with Newcastle Permanent’s Special Fixed Rate Home Loan. You’ll have the ability to make free extra repayments and free redraw, as well as enjoy the freedom of flexible repayments to suit you.  But that's not all, aside from enjoying the security of a great low rate, refinancers can reap the rewards of a $2000 cashback for a limited time too!

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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 loans Awards

Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.

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