Banks hike fixed rates as borrowers race to lock in

Mozo

27 Apr 2021

Time to save article image content

Ultra-cheap fixed rates have fuelled a rush to the property market and sent home values soaring, but a number of banks have begun increasing long-term fixed rates, setting the clock ticking for borrowers looking to lock in at the bottom of the cycle.

Commonwealth Bank, Bank of Queensland and Bankwest are amongst more than a dozen lenders tracked by Mozo to raise 4 or 5 year fixed rates in recent weeks, with more lenders expected to follow suit.

Typically, only around 15% of mortgages are fixed, but the combination of rock-bottom rates and predictable payments have attracted plenty of borrowers in the past year. In fact, fixed rates now account for more than one-third of new mortgages.

Right now, borrowers can still nab plenty of attractive fixed rates from well under 2.00%, but those looking to fix their loan for a longer period of time might have only a small window to take advantage of the best deals.

Read on for the Mozo Editors’ round-up of some of the top fixed rate deals on offer right now….


TOP FIXED RATE HOME LOANS APRIL 2021

Homestar Star Classic Fixed Special Home Loan
Homestar
  • 1.74% fixed rate for 2 years (2.23% comparison rate*)

  • Free extra repayments up to $20,000 per year

  • Unlimited free online redraws

The details:

This limited time 2 year fixed rate special from non-bank lender Homestar is one of the lowest on the market right now. In addition to a killer rate, borrowers can also enjoy a range of flexible features including unlimited free online redraws and the ability to make free extra repayments up to $20,000 each year during the fixed term. What's more, there are no ongoing fees to pay. Minimum 20% deposit required. Apply before 30 May.

UBank UHomeLoan
UBank
  • 1.75% fixed rate for 3 years (2.22% comparison rate*) - Limited time only!

  • 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

  • Mozo Experts Choice Best Fixed Rate Home Loan 2021

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.

Suncorp Fixed Home Loan Special Offer
Suncorp
  • Discounted 1.89% fixed rate for 2 years (2.85% comparison rate*)

  • Free extra repayments - up to $500 each month

  • Zero annual package fee for the first year - save $375

The details:

If you like the idea of being rewarded for locking in an ultra low rate with a trusted bank lender, this fixed home loan from Suncorp ticks all the right boxes. With one of the lowest bank 2 year fixed rates in the Mozo database, plus no establishment fee and up to $500/month in extra repayments, this one’s a real winner. What’s more, for a limited time only Suncorp is waiving the annual package fee in year one, saving you $375. Minimum 20% deposit.

*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.

Calculate your home loan repayments

We can show you the monthly repayment amount for a range of loans

I want to borrow
for years