Up just lowered its fixed home loan rates by up to 0.65%

By Evlin DuBose · · 2 min read
Fact Checked
Advertiser disclosure
Down arrow as Up lowers its fixed interest rate home loans
Media courtesy of Up.

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.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 27 July 2024 Important disclosures and comparison rate warning*

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.54 % p.a.
    Fixed 2 years
    Comparison rate
    7.10 % p.a.
    Initial monthly repayment
    $3,174

    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.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

* 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.

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