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.