Is 2022 your last chance to lock in a low fixed home loan rate?

By Tom Watson · · 3 min read
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After reaching some of the lowest points recorded in years during 2021, interest rates on fixed home loans have started rising across the board.

Longer term fixed rates (4 and 5-year terms) have been ticking up for a while, but in the last few months of 2021 lenders have also started increasing their shorter fixed rates (1, 2 and 3-year terms).

“We had some amazingly low fixed rates last year, but those rates have largely gone now,” says Mozo Banking Expert, Peter Marshall.

“Now that the Reserve Bank’s Term Funding Facility has ended and with the expectation that the official cash rate will start to head north in the next few years, leaders will likely continue to increase their fixed rates - particularly their longer 3, 4 and 5-year rates.”

So given that fixed rates are unlikely to revert to last year's lows, is it still worth locking in a rate, or has the opportunity passed?

“When it comes to interest rates, it’s all relative,” says Marshall. “People looking for rock bottom rates have likely missed out, however, in a couple of years time the fixed rates on offer right now might actually look like a pretty good deal.”

“It’s up to each borrower to do their own risk assessment, and ultimately it will come down to their own situation, but it could be the case down the track that somebody looks back on the rates being offered right now and wishes they had locked in for five years when the opportunity was there.”

Average fixed home loan rates — Mozo database (2015 - 2022)

 

What does a competitive fixed rate look like at present?

As our graph above shows, fixed home loan rates available to owner occupiers are (on average) still relatively low - at least, compared to most of the period between 2015 to present during which we’ve been tracking them.

Those are just the averages though. There are plenty of lenders offering much sharper rates, including those below which currently have the lowest fixed rates being tracked in the Mozo database.

Lowest fixed rates — Mozo database (January 12, 2022)^^

TermLender and loanFixed rate
1-yearUBank - UHomeLoan1.79% p.a. (2.18% p.a. comparison rate*)
2-yearQudos Bank - Fixed Rate Home Loan1.89% p.a. (2.64% p.a. comparison rate*)
3-yearAustralian Mutual Bank - Fixed Rate Home Loan1.98% p.a. (2.54% p.a. comparison rate*)
4-yearBankVic - Fixed Rate Home Loan2.39% p.a. (3.63% p.a. comparison rate*)
5-yearBankVic - Fixed Rate Home Loan2.49% p.a. (3.59% p.a. comparison rate*)

Of course, the alternative for new borrowers or those looking to refinance is to consider a variable rate home loan. While variable rates can go up or down at any time, broadly speaking, variable rates are around the lowest point they’ve ever been at present.

RELATED: The best home loans in Australia for 2022

Thinking about locking in a rate on your home loan? Get acquainted with a range of rates and loans on offer from different banks and mortgage lenders by using Mozo’s handy fixed rate home loan comparison table.

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

Last updated 24 March 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Basic Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 30% min deposit
    • Redraw available
    Interest rate
    5.39 % p.a.
    Fixed 2 years
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing fees
    • Free redraw from your loan using Macquarie Online.
    • No application or account management fees

  • Basic Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 30% min deposit
    • Redraw available
    Interest rate
    5.39 % p.a.
    Fixed 2 years
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing fees
    • Free redraw from your loan using Macquarie Online.
    • No application or account management fees

  • Switch & Save One Year Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Offset available
    • Redraw available
    Interest rate
    5.54 % p.a.
    Fixed 1 year
    Comparison rate
    5.74 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • No penalty for early payout
    • No penalty for making additional payments
    • 100% Savings Offset facility

  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.00 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    5.96 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options
Showing 5 results from 417 home loans. Use the filters to see 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.

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