Experts urge Aussies to opt for fixed home loan rates, following emergency RBA cut
Mozo money experts have urged Aussies to consider fixing their home loan rate, following the Reserve Bank of Australia’s emergency cash rate cut.
In response to the recent economic downturn as a result of the Coronavirus pandemic, the RBA made the decision today to cut the official cash rate by 25 basis points. At just 0.25%, the cash rate is now the lowest it has been in 23 years.
RELATED: How home loan refinancing could give you a much-needed cash injection in 2020
Mozo Director Kirsty Lamont said, “With many of us tightening our purse strings, today’s emergency rate cut could be the signal to fix your home loan, as many lenders may soon be faced with higher funding costs they will need to pass on to customers.”
This comes just days after Mozo research revealed that 87% of Australians fear trying economic times ahead and that 1 in 5 are anxious about their job security.
Why fix?
“Although record low rates are generally a good thing for mortgage customers, the level of risk faced by lenders in this volatile market means locking in a rate could be a smart move.”
Lamont suggested that in these difficult times, fixing your home loan interest rate could help ease any anxiety you might have concerning future variable interest rate hikes.
Within minutes of the RBA’s announcement to cut the cash rate, big four bank Commbank announced that it would be cutting rates for it’s 1, 2 and 3 year Fixed Rate (Wealth Package) Home Loan by a significant 70 basis points. This means that 2 year fixed rates will drop to a low 2.29% p.a. (comparison rate 4.19%*). This new low rate will not come into effect until May 1st, but when it does it will most likely be the lowest fixed rate home loan in the Mozo database^.
Depending on what other home loan lenders make cuts, this low rate will be closely followed by the following fixed rates offered by ING, BankVic and Well Home Loans:
ING Fixed Rate Loan (Owner Occupiers with Orange Advantage)
- 2.49% p.a. for 3 year fixed rate loans (3.71% p.a. comparison rate*)
- Must be combined with ING Orange Advantage Home Loan
- No annual service fee (annual service fee $299 for Orange Advantage Home Loan)
- No application fee
BankVic Fixed Rate Home Loan (Premium Package)
- 2.50% p.a. for 3 year fixed rate loans (3.76% p.a. comparison rate*)
- $375 annual service fee
- No application fee
Well Home Loans Well Balanced Fixed Home Loan
- 2.63% p.a. for 3 year fixed rate loans (3.54% p.a. comparison rate*)
- No annual service fee
- $250 application fee
Next steps
Despite Commbank’s decision today to make cuts to its fixed interest rate home loans, Mozo’s research found that on average, fixed rates offered by the big four are still 0.54% higher than the most competitive rate on the market for 3 year terms.
So while fixing your rate may protect you from future rate rises, it is still a good idea to shop around for the most competitive rates.
RELATED: UBank crowned 2020 Mozo Experts Choice Home Lender Bank of the Year
Lamont also warned Aussies to watch out for hefty variable reversion rates once the fixed loan period is up. Mozo’s research found reversion rates as high as 5.60% p.a., that’s 3.16% p.a. above the most competitive variable rate in the Mozo database!
Feeling inspired to search for a fixed rate home loan? Why not take a look at the deals on offer below or compare rates on our compare fixed rate home loans page.
^Correct as of 19th March, 2020.
Compare fixed rate home loans - last updated 13 August 2022
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Featured Product
Own Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment5.19% p.a.
fixed 1 year4.27% p.a.Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
CompareCompareOwn Home Loan
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- interest rate
- 5.59% p.a.
fixed 3 years
- comparison rate
- 4.60% p.a.
- interest rate
- 5.59% p.a.
fixed 3 years
- comparison rate
- 4.60% p.a.
- upfront fees
- $250
- Ongoing fees
- $250.00 yearly
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- -
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
Read our Mozo Review to learn more about the Own Home Loan
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Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR<70%
interest rate
comparison rate
Initial monthly repayment4.49% p.a.
fixed 1 year3.81% 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.
CompareCompareBasic Home Loan
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.
- interest rate
- 5.29% p.a.
fixed 3 years
- comparison rate
- 4.14% p.a.
- interest rate
- 5.29% p.a.
fixed 3 years
- comparison rate
- 4.14% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - up to $10,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
Read our Mozo Review to learn more about the Basic Home Loan
-
Fixed Rate Home Loan
Home Loan Package, Owner Occupier, Principal & Interest, LVR <80%
interest rate
comparison rate
Initial monthly repayment5.57% p.a.
fixed 1 year4.03% 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.
CompareCompareFixed Rate Home Loan
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.
- interest rate
- 5.87% p.a.
fixed 3 years
- comparison rate
- 4.48% p.a.
- interest rate
- 5.87% p.a.
fixed 3 years
- comparison rate
- 4.48% p.a.
- upfront fees
- $0
- Ongoing fees
- $390.00 yearly
- Discharge Fee
- $300.00
- Extra repayments
- yes - free up to $10,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $7,500,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- 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.
Read our Mozo Review to learn more about the Fixed Rate Home Loan
-
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment4.55% p.a.
fixed 1 year3.91% 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.
CompareCompareBasic Home Loan
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.
- interest rate
- 5.35% p.a.
fixed 3 years
- comparison rate
- 4.23% p.a.
- interest rate
- 5.35% p.a.
fixed 3 years
- comparison rate
- 4.23% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - up to $10,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
Read our Mozo Review to learn more about the Basic Home Loan
-
Mozo experts choice awards won:
- Split Home Loan - 2022
- Australia's Best Large Mutual Bank - 2022
Fixed Rate Home Loan
Owner Occupier, Principal & Interest, LVR<80%
interest rate
comparison rate
Initial monthly repayment4.99% p.a.
fixed 1 year3.63% 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.
CompareCompareFixed Rate Home Loan
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.
- interest rate
- 5.59% p.a.
fixed 3 years
- comparison rate
- 4.04% p.a.
- interest rate
- 5.59% p.a.
fixed 3 years
- comparison rate
- 4.04% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $275.00
- Extra repayments
- yes - free up to $10,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly, Fortnightly, Weekly
- Special Offers
Read our Mozo Review to learn more about the Fixed Rate Home Loan
Interested in a Qudos Bank home loan? Great choice!
Qudos Bank home loan includes:
-
Competitive rates
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No application fee or annual fee
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Borrow up to 80% of the property value
Next step: fill out your details below, so Qudos Bank can get in touch for an obligation-free chat about your needs.
Thank you for your enquiry
We’ve let Qudos Bank know you’re interested in their home loan and one of their home loan experts will be in touch shortly to discuss your needs. We’ve also sent you an email confirmation as a record of your enquiry.
In preparation for your discussion with Qudos Bank, you might want to have on hand the following info:
- Property details
- Your employment details
- If refinancing, the current home loan provider and product
Team Mozo
* 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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