Up just lowered its fixed home loan rates by up to 0.65%
In an era of lenders raising rates, any cuts are always worth a look. Today online bank Up slashed interest rates on its fixed home loan terms by up to 65 basis points.
Here is a breakdown of the key rate changes by Up:
- 1-year fixed rates have been cut by 50 bp.
- 2-4 year terms were slashed by 60 bp.
- 5-year terms are down by 65 bp.
As a result, Up Home now has some of the lowest fixed interest rate home loans in the Mozo database, especially for longer terms.
Up Home fixed rates vs. Mozo database averages (18 December 2023)
| Term | New Up Home fixed rate | Mozo average | Difference |
| 1-year | 6.00% p.a. (6.13% p.a. comparison rate*) | 6.55% p.a. | 55 bp |
| 2-year | 5.85% p.a. (6.09% p.a. comparison rate*) | 6.48% p.a. | 63 bp |
| 3-year | 5.80% p.a. (6.05% p.a. comparison rate*) | 6.45% p.a. | 65 bp |
| 4-year | 5.80% p.a. (6.02% p.a. comparison rate*) | 6.62% p.a. | 82 bp |
| 5-year | 5.80% p.a. (6.00% p.a. comparison rate*) | 6.65% p.a. | 84 bp |
Up’s variable home loan interest rate will stay the same at 6.15% p.a. (6.15% p.a. comparison rate*). For context, the average variable interest rate right now is 6.84% in the Mozo database (OO, P&I, LVR < 80%).
Are fixed home loans a good idea right now? It depends
The upside of fixing your home loan interest rate for a term is that your mortgage repayments will be the same for a period of time – and you avoid the headache of constant rate hikes. In an era of rising rates, the idea of having some sort of shield can be an attractive option.
But with the pace of Reserve Bank rate hikes expected to slow down in 2024, are fixed interest rates a good idea when cuts may be on the horizon?
Mozo interest rates expert Peter Marshall recommends weighing the pros and cons of variable vs. fixed rates when comparing home loans. After all, what suits one person might not suit another.
“I’ve seen many situations where someone has locked into what looks like a really good fixed rate for three or five years, but by the time they get to the third year, the economy’s doing something completely different to what you expected, and the fixed rate you thought was great at the time is no longer a great deal,” explains Marshall.
“I think people are right to be wary of fixed rates – they can be a really good option in the short term, but longer term it’s really hard to come out of it a winner.”
Variable home loans also tend to come with more interest-saving features and greater flexibility, especially when it comes to refinancing.
However, for shorter-terms, fixed rates can act like a safe harbour in the rate storm. Borrowers budgeting carefully may decide they need dependability over vague promises of savings in the future.
“Online mortgage lenders in particular can do some of the more exciting home loan deals on the market, so compare, compare, compare, and if you find something that could work for you, it’s worth investigating,” concludes Marshall.
Compare fixed rate home loans in the table below.
Fixed home loan comparisons on Mozo
-
Fixed Home Loan
- Owner Occupier
- Principal & Interest
- LVR <95%
Go to site- Interest rate
-
5.69
%
p.a.
Fixed 3 years
- Comparison rate
-
6.28
%
p.a.
- Initial monthly repayment
-
$2,899
Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.
- interest rate
-
1 year - 6.19% p.a. (6.45% p.a.*)
2 years - 5.69% p.a. (6.34% p.a.*)
3 years - 5.69% p.a. (6.28% p.a.*)
4 years - 5.89% p.a. (6.30% p.a.*)
5 years - 5.89% p.a. (6.27% p.a.*)
- Fixed loan revert rate
-
6.34% p.a.
- Upfront fees
-
$799
- Ongoing fees
-
$6.00 monthly
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$2,899
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
- Special Offers
-
$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
Go to site -
Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
5.74
%
p.a.
Fixed 3 years
- Comparison rate
-
6.81
%
p.a.
- Initial monthly repayment
-
$2,915
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
- interest rate
-
1 year - 6.14% p.a. (7.13% p.a.*)
2 years - 5.74% p.a. (6.94% p.a.*)
3 years - 5.74% p.a. (6.81% p.a.*)
4 years - 5.89% p.a. (6.75% p.a.*)
5 years - 5.99% p.a. (6.69% p.a.*)
- Fixed loan revert rate
-
7.24% p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge Fee
-
$160.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$20,000
- maximum borrowing amount
-
-
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$2,915
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
No monthly fee after end of fixed rate term. Lock your fixed rate for 90 days for a fee of $750 per $1m in lending (or part thereof).
- Special Offers
-
$3,000 cashback for eligible First Home Buyers borrowing $250k+, $2,000 cashback when you refinance loans of $250k+, <80% LVR, settle within 180 days for first home buyers, 120 days for refinances. Excludes refinances from ANZ, ANZ Plus and Suncorp.
Read reviews and learn more about ANZ home loans
Interested in an ANZ home loan? Lendi specialists can help you refinance your home loan.
Compare 25+ lenders with our trusted partner, Lendi.
Book an appointment and enter the draw to win $30K (T&Cs apply)
Your selected home loans
* 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
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
Calculators
Crunch the numbers with our range of free calculators covering all areas of finance. See all
Home loan rate change calculator
Home loan borrowing calculator
Mortgage repayment calculator
Stamp duty calculator
Budget calculator
See all calculators