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Five-year mortgages available for under 4%

Five-year mortgages available for under 4%

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.

LenderProductAdvertised rateComparison rate
Suncorp BankHome Package Plus First Home Buyer Special Offer3.99%3.88%
Greater BankUltimate Home Loan3.99%4.48%
Greater BankGreat Rate Home Loan4.09%4.25%
NABChoice Package Tailored Home Loan4.09%4.80%
Freedom LendFreedom Fixed4.14%3.78%
Qudos BankFixed Rate Home Loan4.19%4.22%
INGOrange Advantage4.19%4.51%
Newcastle PermanentFixed Rate Home Loan4.19%4.73%
IMB BankPlatinum Package4.19%4.76%
RACQChoices Package4.19%4.80%

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

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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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