Beat mortgage stress with these rock bottom fixed rates


02 Jun 2021

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Aussies looking to beat mortgage stress and save money on their home loan are in for some good news this month. While the big banks have begun to increase some of their fixed rates, the nation's challenger lenders are tempting bargain hunting borrowers with a bunch of jaw-dropping fixed rate home offers.

UBank is leading the charge with a new 1 year fixed special of 1.75% (2.31% comparison rate*) for borrowers who apply before 30 June. Longer term fixed rates have been inching up, but Qudos Bank is offering borrowers the chance to lock in a sub 2.00% rate for 3 years. Meanwhile Bank of Queensland and Virgin Money have competitive 2 year fixed rate deals with refinance cashback offers into the bargain.

Mozo Money Expert Kirsty Lamont said, "Fixing your home loan is a great way to ensure your regular repayments are predictable, giving you peace of mind and security when it comes to your finances. The combination of rock-bottom rates and predictable payments is very popular right now, with fixed rates now accounting for more than one-third of new mortgages."

So if you'd like to take the stress out of your mortgage, start by comparing some of the top new rates on the market below.


UBank UHomeLoan
  • 1.75% fixed rate for 1 year (2.31% comparison rate*) – Apply by 30 June

  • Free extra repayments up to $20,000 p.a.

  • Zero ongoing fees

The details:

Fixed rates don’t get much lower than UBank’s new 1-year fixed rate. Owner-occupier borrowers will be able to grab this limited time only rate on loans between $100,000 and $2,000,000 and 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 $20k per year, for free!

Bank of Queensland Discount Fixed Rate
Bank of Queensland
  • 1.89% fixed rate for 2 years (3.05% comparison rate*)

  • Free extra repayments up to $5,000 each year

  • Bonus $3,000 cashback for refinancers

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 super low rate for four 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.

Virgin Money Special Offer Reward Me Fixed Rate Home Loan
Virgin Money
  • 1.87% fixed rate for 2 years (2.76% comparison rate*)

  • Available to borrowers with at least 60% LVR

  • $3,000 refinance cashback offer

The details:

Virgin Money has just dropped this 2 year fixed rate home loan for borrowers looking to lock in while rates are at record lows without paying the price later on, as the low 2.76% comparison rate* means your loan will still be extremely competitive when the fixed period ends. Extra benefits include the freedom to make up to $10,000 a year in extra repayments and earn thousands of Velocity Points over the life of the loan, not to mention the $3,000 cashback offer for refinancers. Minimum 60% LVR.

Newcastle Permanent Special Fixed Rate Home Loan
Newcastle Permanent
  • 1.89% fixed rate for 2 years (3.67% comparison rate*)

  • Free extra repayments and redraw

  • $2000 cashback bonus offer for refinancers

The details:

Enjoy the security of a 2 year fixed rate and the extra bonus of a $2,000 refinance cashback with Newcastle Permanent’s Special Fixed Rate Home Loan. You’ll have the ability to make free extra repayments and free redraw, as well as enjoy the freedom of flexible repayments to suit you. But that's not all, aside from enjoying the security of a great low rate, refinancers can reap the rewards of a $2,000 cashback for a limited time too! Minimum 80% LVR.

Qudos Bank Fixed Rate Home Loan
Qudos Bank
  • 1.99% fixed rate for 3 years (2.59% comparison rate*)

  • Free extra repayments up to $10,000 per year

  • No application or annual fee

The details:

This value packed fixed home loan from the 2020 winner of Australia's Best Large Mutual Bank offers the chance to lock in sub 2.00% rate for 3 years, guaranteeing long-term peace of mind over your mortgage repayments. To seal the deal, you'll also enjoy zero application or ongoing fees, the freedom to make extra repayments up to $10,000 a year during the fixed term and a competitive revert rate once the fixed term ends. Minimum 80% LVR.

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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 loans Awards

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

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