Five-year mortgages available for under 4%

Nick BendelMar 30, 2018( 2 min read )

Related news

Home Loans

Is this the end of rate cuts? What the RBA is doing instead

With the RBA planning to keep the cash rate on hold at this record low for the foreseeable future, it has turned to other measures to keep the Australian economy’s wheels turning while the nation grapples with the coronavirus pandemic.

Apr 7, 2020( 6 min read )

Home Loans

Is it time to fix your home loan?

It’s the age-old question people love to ask: is now the best time to fix? With cash rate at a historic low of 1 per cent, the question of whether to fix or not has become more prevalent than ever.

Jul 30, 2019( 5 min read )

Home Loans

Buying your first home? Here are four things you need to watch out for

A growing number of first home buyers are rushing to join the property market, lured in by historically low rates. But they may not be looking at the whole picture.

Dec 7, 2019( 6 min read )

Home Loans

Getting a home loan in the time of corona

With everyday life being put under lockdown thanks to the pandemic, and the spectre of recession hanging over our heads, the normally familiar path to property ownership has become more complex.

Apr 20, 2020( 4 min read )

Home loan borrowers can fix their mortgage rates for five years at levels that have rarely been seen in Australian history.

A study of the Australian mortgage market has found that five-year home loans are currently priced as low as 3.99 per cent (see table below).

Suncorp Bank has a first home buyer special that allows borrowers to take out a five-year fixed home loan from just 3.99 per cent (comparison rate 3.88 per cent).

Greater Bank is also offering a five-year fixed-rate mortgage from 3.99 per cent, although its comparison rate is higher, at 4.48 per cent.

NAB has the lowest five-year fixed rate of the big four banks, with its Choice Package Tailored Home Loan starting from 4.09 per cent (comparison rate 4.80 per cent).

By way of contrast, the average interest rate for all the variable-rate mortgages on RateCity was 4.65 per cent as of 1 March.

Lender	Product	Advertised rate	Comparison rate
Suncorp Bank	Home Package Plus First Home Buyer Special Offer	3.99%	3.88%
Greater Bank	Ultimate Home Loan	3.99%	4.48%
Greater Bank	Great Rate Home Loan	4.09%	4.25%
NAB	Choice Package Tailored Home Loan	4.09%	4.80%
Freedom Lend	Freedom Fixed	4.14%	3.78%
Qudos Bank	Fixed Rate Home Loan	4.19%	4.22%
ING	Orange Advantage	4.19%	4.51%
Newcastle Permanent	Fixed Rate Home Loan	4.19%	4.73%
IMB Bank	Platinum Package	4.19%	4.76%
RACQ	Choices Package	4.19%	4.80%

Please note that the cheapest home loan isn’t necessarily the best home loan for some borrowers.

Nick Bendel

Property Personal Finance Writer

A property and personal finance writer, Nick Bendel covers property, loans, credit cards, superannuation, and other bank products. Nick has previously written for The Adviser, Mortgage Business, Lifehacker, Business Insider, Yahoo Finance, and InvestorDaily, and loves getting elbow-deep in the latest ABS, APRA and RBA data.

Today's top home loans products

Discount Offer Variable Home Loan OO P&I ($200k+)

Real Time Rating™

Advertised Rate

Comparison Rate*

2.59%

Variable

2.59%

No upfront or ongoing fees
Extra repayments + redraw services
Free redraw facility
Repayments may decrease if RBA cuts rates

View Now

Home Package Plus Personal Fixed Special (Principal and Interest) 2 Years (LVR 80%-90%)

Real Time Rating™

Advertised Rate

Comparison Rate*

2.29%

Fixed - 2 years

3.32%

Cashback

Refinance and get up to $3,000 cash bonus with an eligible Suncorp Bank Home Loan.

View Now

Live-in Variable Loan (Principal and Interest)

Real Time Rating™

Advertised Rate

Comparison Rate*

2.39%

Variable

2.40%

No upfront or ongoing fees
Extra repayments + redraw services
Free redraw facility
Repayments may decrease if RBA cuts rates

View Now

Star Essentials Home Loan (Amounts $150k-$850k, LVR < 80%)

Real Time Rating™

Advertised Rate

Comparison Rate*

2.39%

Variable

2.39%

special

End of Financial Year Special - No Upfront fees

Enquire Now

FAQs

Tip: You can use RateCity how much can I borrow calculator to get a quick answer.

How much money you can borrow for a home loan will depend on a number of factors including your employment status, your income (and your partner’s income if you are taking out a joint loan), the size of your deposit, your living expenses and any other debt you might hold, including credit cards.

A good place to start is to work out how much you can afford to make in monthly repayments, factoring in a buffer of at least 2 – 3 per cent to allow for interest rate rises along the way. You’ll also need to factor in additional costs that come with purchasing a property such as stamp duty, legal fees, building inspections, strata or council fees.

If you are planning on renting the property, you can factor in the expected rental income to help offset the mortgage, but again it’s prudent to add a significant buffer to allow for rental management fees, maintenance costs and short periods of no rental income when tenants move out. It’s also wise to factor in changes in personal circumstances – the typical home loan lasts for around 30 years and a lot can happen between now and then.

Five-year mortgages available for under 4%

Related news

Is this the end of rate cuts? What the RBA is doing instead

Is it time to fix your home loan?

Buying your first home? Here are four things you need to watch out for

Getting a home loan in the time of corona

Today's top home loans products

Discount Offer Variable Home Loan OO P&I ($200k+)

Home Package Plus Personal Fixed Special (Principal and Interest) 2 Years (LVR 80%-90%)

Live-in Variable Loan (Principal and Interest)

Star Essentials Home Loan (Amounts $150k-$850k, LVR < 80%)

Popular home loans searches

FAQs