Sketch of a house and some home loan calculations under a coffee cup

Compare Fixed Rate Home Loans

A fixed rate home loan is a great option if you'd prefer to lock in your repayments, rather than risk variable rates and bank interest rate changes. 

Use our home loan comparison calculator below to find the right fixed rate loan for you. It gives you a snapshot of different costs and benefits, interest rates, mortgage repayments and fees. Start comparing home loans now.

Fact Checked

Fixed rate home loan comparisons on Mozo - last updated 28 October 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.19% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

    Compare
    Go to site
    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Compare
    Go to site
    Details
  • placeholder
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.87% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Refinancers borrowing $250,000 or more could receive $3,288 cashback (T&Cs, eligibility and lending criteria apply).

    Compare
    Go to site
    Details
  • placeholder
    Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    3.67% p.a.

    Lock in a low fixed rate or choose to split your loan between fixed and variable. Insurance discounts and no fee credit card or zero fee personal loan available. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.

    Compare
    Go to site
    Details
  • placeholder
    Well Balanced Fixed

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    1.95% p.a.
    fixed 2 years
    2.02% p.a.

    Super low fixed rate and only 20% deposit required. Optional 100% offset account. Free extra repayments and redraw facility. Flexible repayment schedule.

    Compare
    Go to site
    Details
  • placeholder
    Fixed Home Loan Special Offer

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    fixed 3 years
    2.83% p.a.

    Competitive low fixed rates for owner occupiers. No monthly account keeping or loan establishment fees. 20% deposit required. Get $3K cash when you refinance to a Suncorp Bank home loan of $750K+ with LVR <= 90%. Apply by 30/11/21, settle by 28/02/22. (T&Cs apply).

    Compare
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.79% p.a.
    fixed 1 year
    2.18% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

    Compare
    Go to site
    Details
  • placeholder
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.87% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Refinancers borrowing $250,000 or more could receive $3,288 cashback (T&Cs, eligibility and lending criteria apply).

    Compare
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Discount Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    fixed 2 years
    3.07% p.a.

    Lock in a competitive rate for 2 years. Only 20% deposit required. Flexible repayment options and make up to $5,000 in additional repayments annually. Refinance to BOQ by 31 October 2021 and get $3,000 cashback (T&Cs apply).

    Compare
    Details
  • placeholder
    Mozo Experts Choice 2021
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    2.64% p.a.

    Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 2021.

    Compare
    Details
  • placeholder
    Fixed Home Loan Special Offer

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.96% p.a.

    No monthly account keeping fees & No loan establishment fee. Get up to $3,000 cash bonus when you refinance with an eligible Suncorp Bank Home Loan. T&Cs & eligibility criteria apply.

    Compare
    Go to site
    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a.
    fixed 3 years
    2.42% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

    Compare
    Go to site
    Details
  • placeholder
    Well Balanced Fixed

    Investor, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.34% p.a.
    fixed 3 years
    2.36% p.a.

    Free online redraw. No annual or settlement fees to pay. 100% Bank-backed Offset available ($10 p/mth). Borrow up to $2,000,000.

    Compare
    Go to site
    Details

^See information about the Mozo Experts Choice Home loans Awards

*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.

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.

Home loan lenders we compare at Mozo

Save with deals from the following well-known brands and many more...

See all home loan providers

Home loan resources

Views, news, tips and guides to help find the home loan for you.

Home Loan FAQs
Guides & Tips
Home Loan Reviews
Home Loan Calculators
News

Fixed home loan rates

To fix or not to fix? That is the question posed by many home buyers across Australia. To help you decide whether a fixed or variable interest rate is your borrowing match, we've compiled this quick guide that runs through the benefits of a fixed interest rate and the traps to watch out for. You can also use the above table to compare fixed rate home loans quickly and easily.

What do you need to know? 

A fixed home loan rate, as the name suggests, is an interest rate that is set for a fixed period of time. Most banks offer fixed rate terms of between one and five years, though some let you lock in a rate for as many as ten years. During this period you won’t be affected by any rate changes, meaning your repayments will stay the same and can budget accordingly.

At the end of the fixed period, borrowers will have the option to select another fixed term or switch to a variable rate loan. The revert rate - that is, the rate that the home loan will automatically revert to if no decision is made - is usually higher than the market rate, so be prepared to shop around at the end of the term or negotiate a better deal with your lender to avoid getting stung.

Fixed rate home loans: pros and cons

What are the advantages of a fixed rate loan?

1. Safeguard against rate hikes

Official interest rates might currently be at all-time lows, but they’re not going to stay that way forever. The RBA makes decisions to move the cash rate based on how the economy is faring, and banks sometimes make out-of-cycle decisions to hike their mortgage rates when profit margins are being squeezed. If either of those situations occur, having your rate locked in for a set period means you won’t be affected, and can continue to benefit from lower rates.

2. Increased certainty

Fixing your home loan means your repayments will stay the same, at least until the fixed period ends. This makes it easier to plan for other expenses, as you’ll know with certainty how much money you’ll have left over after each scheduled repayment. This can be particularly useful for borrowers who have just moved into their new home and are still dealing with moving costs or those who plan to renovate.

What are the disadvantages of a fixed rate loan?

1. You won’t benefit from rate cuts

Fixing your interest rate means it stays the same for the duration of the fixed term, regardless of whether official interest rates move up or down. This means that while you’ll be protected in the case of any rate hikes, you won’t see any benefit if rates go down. 

2. Limits on features

You might find that fixed rate loans aren’t as rich in features as the average variable rate loan. And even if you find one that comes with an offset account and the ability to make extra repayments, there might be fees or limits that can cut into the overall benefits offered. For example, your fixed loan might cap extra repayments at $10,000 per year, meaning you’ll incur penalty costs if you exceed this threshold.

3. Break fees

Exiting a fixed rate loan before the agreed date can be quite costly. So if you want to refinance to another loan or make significant adjustments to your current one, make sure you ask your lender to explain the fees involved and how they’re calculated.

How does a fixed rate home loan compare on features? 

There was a time when fixed rate home loans were light on features, such as offset accounts and the ability to make extra repayments. But many nowadays offer the same extras as variable home loans, albeit with more conditions and restrictions. We’ve detailed a few below.

  • Extra repayments: With a fixed rate home loan you may be able to make extra repayments, however there will most likely be a limit to how much you can make each year or over the term of the loan.
  • Redraw. If you can make extra repayments you may also have the ability to redraw this amount. A fee and minimum redraw amount will most likely apply.
  • Offset account: Some fixed loans will have an offset loan facility, but unlike a variable rate home loan where you can offset 100% of the loan amount, you might only be able to offset a portion, such as 10-40% of the loan.
  • Repayment flexibility: Just as with a variable rate home loan, most fixed loans will allow you to select the repayment frequency - weekly, fortnightly and monthly - that suits you.
  • Loan-to-Value ratio: Fixed home loan rates have different LVR requirements to variable rate loans so while you might need an LVR of 80% for a variable rate loan you may only need a LVR of 90% for a fixed term loan. 
  • Split loan: Many fixed rate loans will have the option of splitting a portion of the fixed loan with a variable rate. There may be some limits to how much you can split but it can mean that you get the benefits of rate certainty for the fixed portion of your loan and added flexibility on the variable.

What about price?

When the Reserve Bank of Australia cut interest rates and commenced its bond purchasing activities in March 2020, the majority of banks and lenders responded by cutting fixed rates and leaving variable rates unchanged. This shift saw fixed rates quickly overtake variable rates as the cheaper of the two. In fact, as of 3 June 2020, the average fixed rate among lenders we track sits a full percentage point lower than the average variable rate — 2.27% p.a. compared to 3.27% p.a.

Can you break a fixed rate loan early?

When you sign up for a home loan, your bank or lender funds the loan by borrowing money from wholesale money markets. And if you decide to fix your loan, the bank’s funding costs will also be fixed to hedge against any rate changes. For this reason, breaking your fixed contract early comes as a rather large inconvenience to your bank, as it’s still required to repay the loans it took out at a fixed rate until the end of the period. If your bank incurs a loss, it will pass the cost onto you in the form of a very hefty break fee. 

There are a few reasons why you might have to exit a fixed period early. These include deciding to sell your property, switching to a variable rate, refinancing to another lender, or paying off your loan in full. The size of the break fee will depend on a few factors, such as your current interest rate, your outstanding balance, and how much longer is left on your fixed rate term.

If you’ve decided that a fixed interest rate home loan is the right pick for you, then you’re going to have to start shopping around. Head on over to our Home Loan Interest Rates page for more information about comparing fixed rate home loans. 

Show transcript

When you’re taking out a mortgage, you’ll have the option to fix your loan. But what exactly is a fixed rate?

While variable rates move in line with the market, fixed rates remain the same until the fixed period ends.

That means you’ll know exactly how large your repayments will be, allowing you to budget accordingly.

The idea behind fixed rates is they allow you to lock in a good rate for your home loan, and guard against interest rate hikes.

The downside is that if interest rates start to drop, you won't enjoy any of the benefits.

Fixed rate terms usually range from 1 year up to 10 years, but the more popular options are in the 1 to 3 year range.

Once your fixed period ends, you’ll have the choice of fixing another term or going with a variable rate.

Something to watch out for is the revert rate.

That’s the rate that kicks in once your fixed period is over, and is usually much higher than the market rate.

Picture of JP Pelosi
JP Pelosi
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

More FAQs on Fixed Rate Home Loans

How do fixed rate home loans compare on fees?

As with variable rate home loans there are some common fees that are payable upfront, and some fees payable on an ongoing basis or at loan termination.

These include:

  • application fee
  • service fee (monthly or annual)
  • discharge fee

The biggest difference between the fees of a fixed and a variable rate home loan is if you decide to switch loans during the loan period or pay out the loan early. With a fixed rate loan you will be charged a 'break fee' and it can be very high. The break fee would be determined by your lender based on how much you have left of your term and the rate you locked your loan in for so it is very difficult to work out how much this will be in advance. You would need to get your lender to provide you with an estimate for this.

How do fixed rate loans compare on cost?

This is where Mozo's handy calculators come in. We can help you compare fixed rate home loans with variable rate loans or compare fixed rate terms to find the best home loan for you.

Here's a rundown of our top tools:

  • Market snapshot table: A selection of advertised fixed rate deals to help you compare rates and features of banks with fixed rate loans keen for your business. You'll find this table at the top of this page.
  • Repayment calculator: Mozo's home loan comparison table will help you to crunch the numbers based on your loan amount and the value of the property. You can then filter by the fixed rate term and our mortgage repayments calculator will show you how much your monthly repayments will be.
  • Comparison Calculator: Can't decide between two fixed rate loans? Simply plug in the details of each loan into the calculator and it will show you which loan will be cheaper.
  • Rate change calculator: Wondering how long you should fix for or when it would be cheaper to get a variable rate loan? Play around with our rate change calculator to see how much your repayments would go up on a variable rate if rates were to change.
  • Reviews. Thousands of customers have reviewed their home loan on Mozo so read up to see what they say about the fees and costs of their fixed loans before you take the home loan plunge. Check out our home loan reviews here.

Will interest rates go up any time soon?

Official interest rates are set by the Reserve Bank of Australia, and it has said on a number of occasions that it doesn’t intend to raise them until the labour market improves and inflation is within the 2-3% target band.

These economic targets are not expected to be met until 2024, at least according to the RBA’s current projections. But there is a chance it might be forced to move sooner, especially since many other central banks have brought forward their interest rate hike projections

Can I split my loan?

If you can’t decide between the certainty of a fixed and the flexibility of variable rate, you might want to consider splitting your loan. This divides your home loan into two smaller loan accounts — one allocated a fixed rate and the other a variable rate. 

This allows you to hedge against any future rate hikes, while also letting you take advantage of any rate drops (if only partially). Splitting your loan also means you can access the features typically associated with a variable rate loan, which usually come with fewer restrictions than fixed options.

What are my options once the fixed term is up?

Once your fixed term ends, the revert rate will automatically kick in unless you negotiate an alternative with your lender. This rate is typically much higher than the rate you signed up for, and can make quite a large impact on your monthly repayments. 

To make sure you’re not left paying more than you need to be, it pays to have a plan in place for when your fixed rate term ends. This might involve calling your lender to see if they’re willing to offer you a better deal. If that doesn’t produce the desired results, there’s always the option to refinance to another lender.

Home Loan Reviews

Westpac Home Loan
Overall 9/10
Westpac Bank, for a great home loan!

I like that they are reachable via phone and email. I like that they follow up with you, on your enquiry into a home loan. I like the fact that they are efficient, double checking they have all the boxes ticked.

Read full review

I like that they are reachable via phone and email. I like that they follow up with you, on your enquiry into a home loan. I like the fact that they are efficient, double checking they have all the boxes ticked.

Price
9/10
Features
8/10
Customer service
9/10
Convenience
8/10
Trust
10/10
Less
Cheryl, Queensland, reviewed 3 days ago
Macquarie Home Loan
Overall 1/10
Banks somewhere else, they charge loyalty tax

The banks service has gone down hill. Now they give a 1300 number to ring and the wait times are awful. I've tried to get the bank to match the new customer home loan rate after being a loyal customer for 10 years and they keep refusing to review the rate. They are very poor in responding to emails and are very fast to raise rates when they can. Avoid at all costs.

Read full review

The banks service has gone down hill. Now they give a 1300 number to ring and the wait times are awful. I've tried to get the bank to match the new customer home loan rate after being a loyal customer for 10 years and they keep refusing to review the rate. They are very poor in responding to emails and are very fast to raise rates when they can. Avoid at all costs.

Price
1/10
Features
4/10
Customer service
1/10
Convenience
6/10
Trust
1/10
Less
Tara, Australian Capital Territory, reviewed 6 days ago
UBank UHomeLoan - Investor Extra Offer
Overall 1/10
Avoid.

Awful customer service. Very slow to deal with. String you along for a couple of weeks then find roadblocks to progress with loan application. You will loose contracts relying on this bank.

Read full review

Awful customer service. Very slow to deal with. String you along for a couple of weeks then find roadblocks to progress with loan application. You will loose contracts relying on this bank.

Price
5/10
Features
3/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Kris, Queensland, reviewed 6 days ago
See
Home loan tips

Whether you’re after the lates home reno trends, money-saving tips or cheapest home loan deals, Mozo’s moneyvators have it covered. Check out our collection of money savvy articles and top tips.

See
Home loan case studies

Find out how you can save on your home loan or learn about loan options for refinancing and investing with this series of helpful case studies and home loan scenarios.

See
Home loan providers

Find the right home lender fast. Mozo details all home loan providers along with their home loan products right here so you compare rate, fees and features easily.

See more home loan resources