Fixed rates fall in Feb: should I lock my home loan rate or wait?

By Jack Dona · · 2 min read
Fact Checked
Advertiser disclosure

In a nutshell... 

  • The average fixed-rate home loan in our database dropped in February 
  • The cuts made to fixed-rates this month ranged from 0.05% to 1.00% 
  • The average 1-year fixed-rate in our database on 15 Feb is 6.51% p.a. 
  • The lowest 1-year fixed-rate in our database on 15 Feb is 5.79% p.a. 
A collage featuring a man thinking whether or not to fix his home loan rate, represented by a thought bubble with a padlock in it. He stands in front of a nice, modern home.

In February, fixed-rate home loans are coming down across the board, thanks to the shifting tides of inflation and the increasing likelihood of a Reserve Bank interest rate cut later in the year.

In the first two weeks of this month alone, we have tracked 32 standard fixed-rate cuts from 10 home loan lenders, which ranged from 0.05% trims, all the way up to chops of 1.00%. 

Among the lenders cutting their rates by significant margins are HSBC, Orange Credit Union, and Aussie.

HSBC cut its Fixed Rate Home Loan (OO, P&I, $400k, <80% LVR) by between -0.60% to -0.80%, depending on the length of the term. 

Orange Credit Union slashed 1% off its 3-year Fixed Rate Home Loan (OO, P&I, $400k, <80% LVR), taking it from a comparatively high rate of 7.14% p.a. down to 6.14% p.a. (7.09% p.a. comparison rate*). 

Aussie’s 3-year Select Basic Fixed home loan (OO, P&I, $400k, 70-80% LVR) dropped by 0.50% too. 

Home loan terms explained

OO = Owner-occupier | P&I = Principal and interest | LVR = Loan-to-value ratio View

Fixed-rate home loans in our database have overall trended slightly downwards over the past two months, particularly on fixed terms longer than one year.

Average fixed rates December to February (as at 15 February 2024)† 

Average 1-year fixed rate
Average 3-year fixed rate
Average 5-year fixed rate
15 Dec 2023
6.55% p.a.
6.45% p.a.
6.66% p.a.
15 Jan 2024
6.54% p.a. 
6.44% p.a.
6.64% p.a.
15 Feb 2024
6.51% p.a. 
6.38% p.a.
6.59% p.a. 
†Based on an owner-occupied home loan, paying principal & interest at $400,000, LVR <80%, as at 15 February 2024. 

If you do choose to lock in a fixed home loan, you risk missing out on falling variable rates if the RBA cuts the cash rate. 

It’s a gamble to say exactly when the RBA will cut, but experts and several Big Four banks forecast a cut to come in September. 

While the average standard variable home loan rate (OO, P&I, $400k, <80% LVR) in our database today is 6.29% p.a., there are still plenty of rates below that to compare, like:

If you do decide to fix, make sure to compare fixed rate home loans to see if you can get a low rate with a lender that suits your needs or consider splitting your loan. Check out a few featured fixed-rate loans below to get your search started. 

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 24 November 2024 Important disclosures and comparison rate warning*

Fixed home loan comparisons on Mozo

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    5.74 % p.a.
    Fixed 3 years
    Comparison rate
    6.81 % p.a.
    Initial monthly repayment
    $2,915

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

Showing 2 of 430 home loans. Use the filters to see more
image of houses

Need help with your Home Loan?

Whether you're looking to purchase a new home or refinance your existing loan, our friends at Lendi can help! Lendi’s expert advice is completely free of charge. Book an appointment and enter the draw to win $30K.

Learn more
Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 24 November 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

Promoted

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Budget Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.18 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

Showing 4 of 430 home loans. Use the filters to see more
image of houses

Need help with your Home Loan?

Whether you're looking to purchase a new home or refinance your existing loan, our friends at Lendi can help! Lendi’s expert advice is completely free of charge. Book an appointment and enter the draw to win $30K.

Learn more

* 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. You can change the loan amount and term in the input boxes at the top of this table. 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

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.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Compare home loans