Compare the cheapest fixed rate home loans^

Find home loans from a wide range of Australian lenders that best suit your needs, whether you're investing, refinancing or looking to buy your first home. Compare interest rates, mortgage repayments, fees and more. - Last updated on 17 Oct 2019

Compare cheapest home loans

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  • HSBC : Home Value Loan

    3.17% p.a. Advertised Rate. 3.19% p.a. Comparison Rate*. Extra low interest rate for refinancers. No ongoing fees. Parents can sign as guarantor. Extra repayments + redraw services.
  • UBank : Owner Occupier Discounted Variable Rate

    3.09% p.a. Advertised Rate. 3.09% p.a. Comparison Rate*. Extra low interest rate for refinancers. No upfront or ongoing fees. Extra repayments + redraw services. Free redraw facility.
  • Reduce Home Loans : Rate Lovers Variable Home Loan

    2.77% p.a. Advertised Rate. 2.79% p.a. Comparison Rate*. Extra low interest rate for refinancers. No upfront or ongoing fees. Extra repayments + redraw services. Free redraw facility.
  • loans.com.au : Smart Home Loan

    2.88% p.a. Advertised Rate. 2.90% p.a. Comparison Rate*. Extra low interest rate for refinancers. No ongoing fees. Extra repayments + redraw services. Free redraw facility.

Some of the cheapest fixed rate home loans

When you want a simple arrangement that makes budgeting easy and means you can plan ahead without worrying about surprise increases in payments, a fixed rate home loan is a great choice. There are a great many such home loans out there but finding the cheapest fixed rate home loans can be a challenge. This is partly because the cheapest loan for one person may not be the cheapest for another. To get a good deal, you will need to find the right loan for your particular financial circumstances.

Comparing home loans

With so many fixed rate loans on the market, how should you go about comparing them? The obvious answer is to look at the interest rates advertised by their providers, but these can present a misleading picture. That’s because many loans with low interest rates have high annual fees or other attendant costs that mean you end up paying more. To avoid getting caught out like this, use the comparison rate. The law says that every lender has to calculate this in the same way and it covers most types of fee as well as interest, so it makes it much easier for you to identify the best deals.

How to find the cheapest loan from the available options

There are several factors you need to take into account to find the cheapest loan. Low interest rates may not save you money overall if you’re obliged to sign up to a lengthy loan term. Because you won’t be able to enjoy lower rates when the RBA cash rate falls, you’ll need to make sure that you fix your rates at a good time, so it’s worth keeping a close eye on national economics in order to make sure you pick the right moment. Because switching lender usually entails high charges for fixed rate borrowers, you will need to get it right first time.

The value of security

Although variable rate home loans often offer cheaper rates than fixed rate loans, the latter really pay off when it comes to security. That’s because you won’t have to worry about your payments increasing if the national interest rate rises. This could not only save you money directly – it can help you make money. You won’t need to keep easily accessible savings on hand in case your payments rise, so if you have extra money that you don’t immediately need, you’re free to invest it. If you make good investment choices this can easily compensate for the difference in rates.

Pros and cons

There are good and bad things about choosing a fixed rate home loan, even if you get a very cheap deal.

  • No rate rises – you can predict exactly what you’ll have to pay;
  • A simple arrangement that’s easy to keep track of;
  • Easy budgeting gives you more control over your money;
  • Few, if any, extra features;
  • Unlikely to offer free early repayments;
  • Higher fees if you want to end the arrangement.

*This article doesn't serve as a recommendation of any product, nor does it compare all products. 


Mark Bristow is a senior financial writer for RateCity. Working for over ten years, Mark previously wrote and researched commercial real estate at CoreLogic, consumer technology at Appliances Online, and most recently, personal finance for RateCity. Whatever the topic, Mark’s goal is always to provide simple solutions to complex problems.


^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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