Fixed rates bonanza has borrowers locking in

Appetite for fixed home loans is showing no signs of slowing down amongst mortgage customers, and the bonanza of cheap fixed rates and cashback deals on offer from rival lenders is just one of the reasons. 

With the big banks hiking some of their fixed rates, there’s a new sense of urgency around jumping on the remaining crop of ultra cheap fixed rate deals before they too disappear and the chance to lock in below 2.00% for up to 3 years is gone.

And while the big banks are hiking, rival lenders are still cutting fixed rates in a bid to win over more borrowers. Australia’s first smart bank 86 400 has dropped a cracking fixed deal of 1.85% for 3 years (2.58% comparison rate*) and UBank has cut its 1 year fixed rate to 1.79% (2.32% comparison rate*).

Fixing your home loan is a great way to ensure your regular repayments are predictable, giving you stability and security when it comes to your finances. Shop around and compare some of this month’s top rates on the market below.

Top Fixed Rate Home Loans

UBank - UHomeLoan
  • 1.79% fixed rate for 1 year (2.32% comparison rate*)
  • Free extra repayments up to $20,000 p.a.
  • Zero ongoing fees
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The details:

1-year fixed rates don’t get much lower than this cracking offer from UBank. Owner-occupier borrowers can lock in an ultra low 1.85% for 3 years (2.24% comparison rate*) on loans between $100,000 and $2,000,000. While there is an initial $395 application fee to consider, there are no other fees to worry about. UBank even lets customers make extra repayments towards the loan of up to $20,000 per year, for free!

86 400 - Own Home Loan
  • 1.85% fixed rate for 3 years (2.59% comparison rate*)
  • $2,000 cashback bonus - Apply by 30 September
  • Free extra repayments up to $20,000 per fixed rate term
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The details:

This cracking new 1.85% fixed rate (2.59% comparison rate*) from 86 400 is one of the lowest 3 year fixed rates on the market, and the $2,000 cashback offer seals the deal. What's more, borrowers can split their loan into fixed and variable portions and access multiple offset accounts on the variable portion. There's also the ability to make free extra repayments up to $20,000 during the fixed term and enjoy free redraw. Available to borrowers with 20% deposit.

Bank of Queensland - Discount Fixed Rate
  • 1.99% fixed rate for 2 years (3.07% comparison rate*)
  • Free extra repayments up to $5,000 each year
  • Bonus $3,000 cashback for refinancers - limited time only
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The details:

BOQ is a favourite with borrowers looking to find value outside of the big four banks, and for good reason. The BOQ Discounted Fixed Home Loan lets you lock in a sub 2.00% rate for two years while still having the flexibility to pay down your mortgage faster with free extra repayments of up to $5,000 a year. Plus, for a limited time refinancers can score a $3,000 cashback. Minimum loan size $250,000, 80% LVR or less.

Macquarie - Basic Home Loan
  • 2.09% fixed rate for 3 years (2.32% comparison rate*)
  • Available to borrowers with at least 70% LVR
  • No upfront or ongoing fees
The details:

This competitive 3-year fixed rate home loan from Macquarie is a great option for borrowers looking to lock in while rates are at record lows without paying the price later on, as the low 2.32% comparison rate* means your loan will still be great value when the fixed period ends. Extra benefits include free extra repayments, free redraw and zero upfront or ongoing fees. Minimum 70% LVR.

Suncorp - Fixed Home Loan Special Offer
  • 1.89% fixed rate for 2 years (2.85% comparison rate*)
  • No monthly account keeping fees and no loan establishment fee
  • New $3,000 cashback offer for refinancers
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Super low fixed rate for 2 years? Tick. No upfront or ongoing fees? Double tick. Ability to make free extra repayments during the fixed term? Yep - up to $500 a month without penalty. This 2 year fixed home loan special offer from Suncorp really does tick all the boxes, and as the cherry on the cake there's a new $3,000 cashback offer for refinancers. Available on loans of $750,000 or more, with an 80% LVR.

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Want to compare more home loans? View the latest mortgage rates from over 80 lenders at Mozo's home loan comparison hub.

* 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.

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