Could your home loan rate benefit from a quick fix?

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By Tom Watson ·

In case you missed the memo, home loan interest rates have dropped again (yes, again!) following the Reserve Bank’s November rate cut.

And while lenders have been dishing out rate reductions left, right and centre, their main focus has been on fixed home loan offers. In fact, the 2-year fixed rate average in our database has now fallen to just 2.35%.

But the big question is, can you save yourself some money by locking in a low rate on your home loan for the next few years?

You’ll need to consider more than just the rate though, as there will be plenty of fees and features to weigh up, as well as break costs if you decide to switch before the fixed period ends. To help you start comparing, we’ve wrapped up offers from a variety of lenders below.

HOT FIXED HOME LOANS

loans.com.au - Special Offer Fixed Rate Home Loan
  • 1.99% fixed rate for 3 years (2.70% comparison rate*)
  • Free extra repayments up to $10k annually
  • Borrow from $50,000 to $1,000,000

Online lender loans.com.au is no stranger to a sharp rate or two, so it won’t surprise you to learn that the Special Offer Fixed Rate Home Loan currently comes with a 3-year fixed rate of just 1.99% (2.70% comparison rate*) for owner occupiers. The loan also allows borrowers to make extra repayments (free up to $10,000 each year), but make sure you set aside some of your budget for the valuation and settlement fees.

UBank - UHomeLoan (Fixed)
  • 1.95% fixed rate for 3 years (2.27% comparison rate*)
  • Competitive revert rate
  • No ongoing fees

A low fixed rate is great, but a competitive revert rate can be the cherry on top and that’s exactly what UBank is offering with the UHomeLoan (Fixed). Owner occupiers can currently grab a fixed rate of 1.95% (2.27% comparison rate*) for 3 years and, once that period’s over, a very reasonable revert rate of 2.34%. The only fee attached to the loan is a $395 application fee, but UBank is currently waiving this for fixed rate loans that settle by March 31, 2020.

Suncorp - Fixed Home Loan Special Offer
  • 1.89% fixed rate for 2 years (2.94% comparison rate*)
  • Extra repayments available (free up to $500/month)
  • Annual package fee waived in first year

We’re not exaggerating when we say Suncorp’s Fixed Home Loan Special Offer is worth a closer look, because it’s 2-year fixed rate of 1.89% (2.94% comparison rate*) is currently one of the lowest in our database. While the loan does come with a $350 discharge fee and a yearly service fee of $375, Suncorp will waive the service fee in the first year, plus the loan also offers extra repayments (free up to $500/month).

Virgin Money - Special Offer Reward Me Fixed Rate Home Loan
  • 2.04% fixed rate for 3 years (2.73% comparison rate*)
  • $3,000 cashback offer
  • Additional repayments (up to $10k per year)

Virgin Money’s Special Offer Reward Me Fixed Rate Home Loan not only comes with a low 3-year fixed rate of 2.04% (2.73% comparison rate*) for owner occupiers, it offers handy features including extra repayments (up to $10k p.a.), a split rate option and even a $3,000 cashback offer for new borrowers refinancing loans of $300,000 or more. Be sure to weigh these up against the $10 monthly service fee and the one-off fees including the $350 discharge fee.

HSBC - Fixed Rate Home Loan
  • 2.09% fixed rate for 2 years (2.98% comparison rate*)
  • Make extra repayments (free up to $10k p.a.)
  • Loans from $50k to $7.5 million

Like the idea of locking in your rate? Well HSBC’s Fixed Rate Home Loan should pique your curiosity because it comes with a 2-year fixed rate of 2.09% (2.98% comparison rate*). Available to owner occupiers on loans from just $50,000 all the way up to $7,500,000, HSBC also gives borrowers the opportunity to make extra repayments (free up to $10k/year) - all without any upfront or ongoing fees, though there is a $300 discharge fee.

Like to see how these offers stack up against other fixed and variable rates? Check out the latest home loan offers from over 80 lenders at Mozo's home loan comparison hub.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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