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Following the outbreak of the novel coronavirus, and the Reserve Bank of Australia’s (RBA) emergency cash rate cut, now may be the time to think about locking in a fixed home loan rate.  

In response to the rapid spread and emerging financial effects of COVID-19, the RBA made the extraordinary decision to cut its official cash rate twice this month, dropping it to an historic low of 0.25%. (The first time they’ve cut rates ‘out of cycle’ since 1997).

Recent Mozo research also showed that 87% of Aussies are fearful of how the times ahead will impact them financially. 

“The Coronavirus pandemic has and will hit many Aussie homes economically, and Mozo’s latest research proves that the majority of us are worried about what’s to come,” Mozo Director, Kirsty Lamont said. 

“Since the RBA’s emergency rate cut last week, lenders have been slashing fixed interest rates - so in this unstable financial environment, locking in a low fixed home loan rate could be a smart move for mortgage customers.” 

So what difference has the RBA cut made to fixed home loan rates? 

After the first cut on 3 March 2020, 19 home loan lenders in the Mozo database dropped their fixed rate offerings. 

Then, after the second emergency rate cut on 19 March 2020, 18 providers slashed rates, some of which were the same providers who responded to the first cut, making it the second time for them this month. 

And notably, all four of the big banks: ANZ, CommBank, NAB and Westpac, made changes to fixed home loans after the most recent rate cut.  

“While it’s true that variable rates are at an all time low, due to the turbulence of the current market, Aussie lenders could soon see higher funding costs which will then affect their customers,” Lamont said. 

“So locking in a fixed rate now, may help alleviate the stress if variable rates were to hike back up.” 

According to the Mozo database, the lowest fixed rate is offered by ING - at 2.09% on its 2 year fixed term and 2.14% on its 3 year fixed term, while the lowest variable rate sits at 2.44%. 

It’s important to remember, however, reversion rates on fixed home loans tend to be significantly higher than the fixed rate and some standard variable rates. 

RELATED ARTICLE: Experts urge Aussies to opt for fixed home loan rates, following emergency RBA cut

Want to check out some fixed home loan options? Check out the table below or jump over to our fixed home loan comparison tool for even more providers.

Fixed Home Loans 2020 - last updated 23 April 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Fixed Express Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 2 years
    6.14% p.a.

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee.

    Compare
    Details
  • Mozo Expert Choice Badge
    Fixed Express Home Loan

    Owner Occupier, Interest Only

    interest rate
    comparison rate
    Initial monthly repayment
    6.49% p.a.
    fixed 2 years
    6.39% p.a.

    Compare
    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.41% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 20% deposit required.

    Compare
    Details
  • Fixed Rate Loan with Orange Advantage

    Orange Advantage, Owner Occupiers, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    fixed 2 years
    6.16% p.a.

    Know exactly what your repayments will be, and you can fix your rate for up to 5 years. No monthly, annual fee or transaction fees. Free additional repayments (less than $10,000 p.a.). Valid for loans of $50,000 up to $2,000,000.

    Compare
    Details
  • Mozo Expert Choice Badge
    Fixed Express Home Loan

    Owner Occupier, Interest Only

    interest rate
    comparison rate
    Initial monthly repayment
    6.49% p.a.
    fixed 2 years
    6.39% p.a.

    Compare
    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    fixed 3 years
    6.19% 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.

    Compare
    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. 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

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