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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 13 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    4.49% p.a.
    fixed 1 year
    3.81% 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.

    Details
  • Fixed Rate Home Loan

    Home Loan Package, Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.57% p.a.
    fixed 1 year
    4.03% 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.

    Details
  • Basic Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    4.55% p.a.
    fixed 1 year
    3.91% 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.

    Details
  • Mozo Expert Choice Badge
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    4.99% p.a.
    fixed 1 year
    3.63% 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.

    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, 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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