Rock bottom fixed home loan rates: Time to fix?

By Mozo Editorial · Monday, 14 June 2021 · 3 min read

Fact Checked

Aussies looking to save money on their home loan are in for some good news this month. While the big banks have begun to increase some of their fixed rates, the nation's challenger lenders are tempting bargain hunting borrowers with a bunch of jaw-dropping fixed rate home offers.

UBank is leading the charge with a new 1 year fixed special of 1.75% (2.31% comparison rate*) for borrowers who apply before 30 June. Longer term fixed rates have been inching up, but Qudos Bank is offering borrowers the chance to lock in a sub 2.00% rate for 3 years. Meanwhile Bank of Queensland and Virgin Money have competitive 2 year fixed rate deals with refinance cashback offers into the bargain.

Mozo Money Expert Kirsty Lamont said, "Fixing your home loan is a great way to ensure your regular repayments are predictable, giving you peace of mind and security when it comes to your finances. The combination of rock-bottom rates and predictable payments is very popular right now, with fixed rates now accounting for more than one-third of new mortgages."

So if you'd like to take the stress out of your mortgage, start by comparing some of the top new rates on the market below.

TOP FIXED RATE HOME LOANS JUNE 2021

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Important disclosures and comparison rate warning*

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Comparison rate warning

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.

How Initial Monthly Repayments figures are estimated

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.

UBank - UHomeLoan

1.75% 1 year fixed rate (2.31% comparison rate*) - Apply before 30 June
Free extra repayments up to $20,000 p.a.
Mozo Experts Choice Best Fixed Rate Home Loan 2021

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The details:

Home loan rates don’t get any lower than those available with UBank’s record-breaking new 1 year fixed rate. Owner-occupier borrowers will be able to grab that rate on loans between $100,000 and $2,000,000 and there are no fees to worry about as for a limited time UBank is waiving the upfront establishment fee. UBank even lets customers make extra repayments towards the loan of up to $20k per year, for free!

Bank of Queensland - Discount Fixed Rate

1.89% fixed rate for 2 years (3.05% comparison rate*)
Bonus $3,000 cashback for refinancers - Apply before 27 June
Mozo Experts Choice Best Fixed Rate Home Loan 2021

Find out more

The details:

Bank of Queensland's Fixed Rate Home Loan is packed with great value, including free extra repayments (up to $5,000/year) and a flexible weekly, fortnightly or monthly repayments schedule. On top of that, refinancers will also score a bonus $3000 cashback when you switch your loan to the award-winning Bank of Queensland for a limited time. Available to borrowers with a 20% deposit or more.

Virgin Money - Special Offer Reward Me Fixed Rate Home Loan

1.87% fixed rate for 2 years (2.76% comparison rate*)
Available to borrowers with at least 60% LVR
$3,000 refinance cashback offer

Find out more

The details:

Virgin Money has just dropped this 2 year fixed rate home loan for borrowers looking to lock in while rates are at record lows without paying the price later on, as the low 2.76% comparison rate* means your loan will still be extremely competitive when the fixed period ends. Extra benefits include the freedom to make up to $10,000 a year in extra repayments and earn thousands of Velocity Points over the life of the loan, not to mention the $3,000 cashback offer for refinancers. Minimum 60% LVR.

Qudos Bank - Fixed Rate Home Loan

1.99% fixed rate for 3 years (2.59% comparison rate*)
Free extra repayments up to $10,000 per year
No application or annual fee

Find out more

The details:

This value packed fixed home loan from the 2020 winner of Australia's Best Large Mutual Bank offers the chance to lock in sub 2.00% rate for 3 years, guaranteeing long-term peace of mind over your mortgage repayments. To seal the deal, you'll also enjoy zero application or ongoing fees, the freedom to make extra repayments up to $10,000 a year during the fixed term and a competitive revert rate once the fixed term ends. Minimum 80% LVR.

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

^* 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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