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.

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  • placeholder
    Special Offer Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    fixed 3 years
    2.70% p.a.
    Go to site
    Details
  • placeholder
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.
    fixed 3 years
    2.24% p.a.
    Go to site
    Details
  • placeholder
    Basic Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.43% p.a.
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Discount Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.94% p.a.
    fixed 3 years
    2.97% p.a.
    Details
  • placeholder
    Well Balanced Fixed

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    1.95% p.a.
    fixed 2 years
    2.17% p.a.
    Go to site
    Details
  • placeholder
    Fixed Rate Loan with Orange Advantage

    Owner Occupiers, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.04% p.a.
    fixed 3 years
    3.60% p.a.
    Go to site
    Details

*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 Loans Awards

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