bcu takes pole position on 1-year fixed home loan rates

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Coffs Harbour-based credit union bcu has claimed the position of lowest 1-year fixed home loan rate in the Mozo database following a sizeable 31 basis point cut announced this morning.

The 1-year fixed rate on bcu’s Fixed Rate Home Loan now sits at just 1.67% (3.85% comparison rate), which is available to owner occupier borrowers making principal and interest repayments.

That new rate is 2bp lower than the closest contender - 1.69% (3.49% comparison rate*) offered by Greater Bank on its Discount Great Rate Home Loan - and it’s 66bp lower than the 1-year fixed rate average in our database.

The credit union also made a number of other rate changes to its Fixed Rate Home Loan this morning:

  • 2-year fixed rates were reduced by 20bp to 1.78% (3.67% comparison rate*) for owner occupiers
  • 4-year fixed rates were raised by 20bp to 2.19% (3.46% comparison rate*) for owner occupiers
  • 5-year fixed rates were raised by 10bp to 2.49% (3.44% comparison rate*) for owner occupiers

Bcu’s moves are perhaps reflective of a wider trend emerging in the fixed rate section of the mortgage market. While short term fixed rates (1 and 2-years) have remained relatively steady, questions have started to be raised about the direction long term fixed rates (4 and 5-years) are heading in.

Greater Bank, Commonwealth Bank, Teachers Mutual Bank and now bcu are among a number of lenders to have lifted 4 and 5-year fixed rates in recent weeks.

Compared to previous years, fixed rates of all lengths still remain at relatively low levels though. For context, here are the lowest rates and average rates^ for 1-5 year fixed terms in the Mozo database as of April 23, 2021.

TermRate leaderFixed rateMozo average
1-yearbcu1.67% (3.85% comparison rate*)2.33%
2-yearHomestar1.74% (2.23% comparison rate*)2.29%
3-yearUBank1.75% (2.22% comparison rate*)2.33%
4-yearBank of Melbourne & St.George 1.94% (3.21% comparison rate*)2.43%
5-yearING2.19% (3.37% comparison rate*)2.66%

RELATED: Does it take long to get a home loan in 2021?

Thinking about locking in a deal while rates are low? Check out some of the hot offers we’ve wrapped up in the table below, or check out our home loan comparison tables even more loans from a greater range of lenders.

^Based on an owner occupier making principal and interest repayments on a $400,000 loan at 80% LVR. For more information on average mortgage rates, check out our Australian home loan statistics page.

Compare fixed home loans - last updated 11 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    4.49% p.a.
    fixed 1 year
    3.35% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

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  • Fixed Rate Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    5.57% p.a.
    fixed 1 year
    4.03% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022.

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  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    4.55% p.a.
    fixed 1 year
    3.45% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

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  • Mozo Expert Choice Badge
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    4.99% p.a.
    fixed 1 year
    3.63% p.a.

    Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 2022.

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* 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, loan amount and term entered. 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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