Variable	1 Year Fixed	2 Years Fixed	3 Years Fixed

Company	Product	Rate %	Apply
	Options Plus Home Loan	5.85
	Standard Variable	5.89
	SuperStar	5.97
	Premium Plus Pkg <$500k	5.99
	Transport Pack Variable	6.00

These variable rate home loans are ranked by interest rate on balance of $250,000.

Company	Product	Rate %	Apply
	1 Year Fixed	6.17
	Fixed ProPack1 1yr	6.19
	Standard 1 year Fixed	6.24
	1 year Fixed	6.39
	1 year Fixed	6.39

These 1 Year fixed rate home loans are ranked by interest rate on balance of $250,000.

Company	Product	Rate %	Apply
	Standard 2 year Fixed	6.94
	Fixed ProPack1 2yr	6.94
	2 Year Fixed	6.99
	2 year Fixed	7.19
	Transport 2 year Fixed	7.19

These 2 Years fixed rate home loans are ranked by interest rate on balance of $250,000.

Company	Product	Rate %	Apply
	Smartsuite 3yr Fixed	6.99
	3 year Fixed	7.18
	Fixed ProPack1 3yr	7.29
	Standard 3 year Fixed	7.39
	3 year Fixed	7.49

These 3 Years fixed rate home loans are ranked by interest rate on balance of $250,000.

5 Stars Mortgages - Variable Rate

Company	Product	Rate %	Apply
	Standard Variable	5.89
	Premium Plus Pkg <$500k	5.99
	Inv EasyStart	6.04
	Advantage Var <$600k	6.13
	Negotiated Basic H/L	6.26

These loans have low rates and offer things like redraw facilities and the ability to make additional repayments

How to spot a winning fixed rate deal

Many lenders are pushing up their fixed rates, but if you still want the certainty how can you identify a good deal?

By Jackie Pearson
1 July 2009

Lenders have been gradually raising their fixed home loan rates for a couple of months now but increases made the headlines when the Commonwealth Bank recently decided to lift both its variable and fixed interest rates in spite of the official cash rate staying stable at 3%.

A fixed rate means the interest and your repayments remain the same for the fixed period, which can be for one year or up to 10. Variable rates, on the other hand, fluctuate throughout the life of your home loan so your repayments can go up and down.

The main advantage of a fixed rate home loan is that you have the certainty of knowing that your repayments won’t go up if the Reserve Bank or individual lenders decide to put their rates up. The disadvantage is that you don’t get the benefit of lower rates and lower repayments if the variable rate goes down.

Fixed mortgages have also traditionally been less flexible than variable rate mortgages with restrictions on additional repayments and break fees if you want to pay out the fixed loan early. Even so, if you’re a borrower looking for repayment certainty what are the winning features you should look for in a fixed rate loan?

1. The rate, of course!
A competitive interest rate has to be at the top of your list. For example, the lowest standard variable rate available at the moment is 4.79%. By comparison, Reduce Home Loans is currently offering a one-year fixed rate of 3.29% and the cheapest three-year fixed rate deal at 5.74%.

The levels at which lenders set their fixed rates is usually seen as an indication of how they expect the official cash rate (and therefore variable home loan rates) to move. Reduce Home Loans is taking a punt that variable rates won’t be higher than 5.74% by 2012.

Many economists, however, as predicting interest rate increases within the next three years. You have to look at current variable rates and decide whether you’d be better off fixing or riding out the possibility of variable rates going higher.

2. The ability to split
If you want an each-way bet on interest rates it is important to find a home loan that allows you to split the amount you owe between a fixed and variable rate. Many borrowers opt for a 50:50 split but other combinations are available.

3. Low fees
Look at both upfront costs and ongoing fees and make sure both are competitive. Don’t overlook break costs – you never know when your circumstances are going to change so you should at least understand how break costs would be calculated and what you might have to pay to pay off the loan early.

4. Overall flexibility
Portability is important. That means you can retain the mortgage if you sell one house and buy another. If you can’t do that and you wish to move into a larger home, for instance, you may be forced to pay out the fixed loan early and you may incur break fees.

Make sure the loan is available if you are constructing a new home. Make sure that you are allowed to make additional payments without penalty, including one-off lump sum payments. And ensure you have the option of repaying weekly, fortnightly or monthly.

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