Record low rates: Is now the time to fix?

Ceyda Erem

09 Jul 2019

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To fix or not to fix? That’s the question on the minds of many Aussies across the country. 

Fixing your home loan rate can give you financial peace of mind knowing your rate won’t change for a set period. And with fixed rates below 3% available, it's tempting to lock down a hot deal right now. 

On the flipside, there are some super low variable rates around too, and with another RBA rate cut forecast for later this year, it might be worth holding out. Either way, Mozo director Kirsty Lamont says borrowers are spoilt for choice at the moment.

"Whether you choose to fix now, or just opt for a really competitive variable rate and see what happens later in the year, this is the perfect time to be refinancing or getting into the home loan market," said Mozo Director Kirsty Lamont.

To help you pick the right rate, we’ve rounded up some of the hottest offers for both variable and fixed mortgages below.

Hot fixed rate offers

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UBank UHomeLoan
  • Low 2.99% one year fixed rate (3.86% comparison rate*)

  • No ongoing fees

  • Extra repayments available (up to $20,000 annually)

Like the idea of a short and sweet fixed rate? Then look no further than the UBank UHomeLoan, which features a 1 year fixed rate of 2.99% (3.86% comparison rate*). Though there is a one-off $395 application fee, borrowers will pay no ongoing, legal, valuation, settlement or discharge fees over the life of the loan. And with the option to make extra repayments of up to $20,000 a year, you’ll be well on your way to getting debt free. 

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Macquarie Basic Home Loan
  • 3.19% three year fixed rate (3.24% comparison rate*)

  • Option to earn Qantas Points

  • No application or ongoing fees

While it may be called a basic home loan, the Macquarie Basic Home Loan is anything but. Aside from the low three year fixed rate of 3.19% (3.24% comparison rate*), the Macquarie Basic Home Loan comes with no application or ongoing fees, however there is a $400 discharge fee. You’ll be able to make as many extra repayments to your loan as you like and redraw these repayments for free! And if you like to travel, you’ll be happy to know that there’s an option to earn 10K Qantas Points for every $100K you borrow, plus an extra 1,000 per month when your balance remains over $150K! 

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loans.com.au Fixed Home Loan 90
  • 3.19% two year fixed rate (3.43% comparison rate*)

  • Free extra repayments (up to $10,000 per annum)

  • Split account available

If you like the sound of an online lender, then you might want to consider the loans.com.au Fixed Home Loan. This loan comes with a 3.19% two year fixed rate (3.43% comparison rate*) and no application or ongoing fees, so you can work towards putting every dollar towards your repayments. There’s the option to split your loan, so you can take advantage of a low variable rate and if you’re keen on paying off your loan fast, there’s the free extra repayment facility (up to $10,000 annually). 

Low variable rate offers

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loans.com.au Smart Home Loan
  • Competitive 3.03% variable rate (3.05% comparison rate*)

  • Free extra repayments and redraw

  • No application or service fees

But if you prefer the idea of a variable rate, you’ll still be able to take out a home loan with loans.com.au. The Smart Home Loan comes with a competitive 3.03% variable rate (3.05% comparison rate*) and no application or service fees, but you will need to factor in the $300 settlement and $220 valuation fees. And with a free extra repayments and redraw facility on your side, you’ll have added flexibility. Just keep in mind, you will need a 20% deposit to apply. 

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Athena Variable Home Loan
  • Low 3.09% variable rate (3.05% comparison rate*)

  • Zero fees

  • Split loan option available

Thinking of refinancing to a home loan that can help keep costs low? Then the Athena Variable Home Loan could be the right choice for you. There’s a low 3.09% variable rate (3.05% comparison rate*) and zero fees over the life of your loan, keeping your mortgage budget-friendly. Free extra repayments are welcome and if you ever need those additional repayments back unexpectedly, you’ll be able to redraw them for free! And if you want to experience a fixed rate for a period of time, you can, thanks to the split account option. 

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Homestar Variable Rate Loan
  • Highly competitive 2.99% variable rate (2.99% comparison rate*)

  • No application or ongoing fees

  • Flexible repayment schedule

Last but definitely not least is the Homestar Star Essentials Home Loan, offering a super low 2.99% variable rate (2.99% comparison rate*). The Star Essentials Home Loan is full of flexibility, as not only will you have the choice to make your payments on a weekly, fortnightly or monthly basis, but there’s also free extra repayments on offer. And if you ever want to fix your home loan for a little while, there is a split account option. 

*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.

Want to compare even more options? Then head on over to our home loan comparison tool

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