Mortgage rates lowest for borrowers who fix


Nick Bendel

Nick Bendel

( 2 min read )

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Two-year fixed mortgage rates are currently offering the lowest average rates, an analysis of home loans data has found.

At the end of February, the average of all the owner-occupied two-year fixed loans listed on RateCity was 4.16 per cent.

That was lower than the averages of the other fixed-rate options and also variable-rate mortgages.

The averages were:

  • Two-year fixed = 4.16 per cent
  • One-year fixed = 4.20 per cent
  • Three-year fixed = 4.24 per cent
  • Variable = 4.46 per cent
  • Four-year fixed = 4.60 per cent
  • Five-year fixed = 4.66 per cent

It was a similar story for investment mortgages, where two-year fixed home loans were again cheaper than all the other options.

The averages were:

  • Two-year fixed = 4.46 per cent
  • One-year fixed = 4.51 per cent
  • Three-year fixed = 4.54 per cent
  • Four-year fixed = 4.86 per cent
  • Variable = 4.91 per cent
  • Five-year fixed = 4.96 per cent

Mortgage interest rates getting dearer

Looking back over the previous year, the data shows that two-year fixed-rate mortgages had lowest average rates for every month between February 2017 and February 2018.

That was the case for both owner-occupied and investment home loans.

The data also shows that all categories of home loans became more expensive over the year.

Owner-occupied home loan rates

Date 1-year fixed 2-year fixed 3-year fixed 4-year fixed 5-year fixed Variable
February 2017 4.16% 4.10% 4.14% 4.50% 4.59% 4.35%
February 2018 4.20% 4.16% 4.24% 4.60% 4.66% 4.46%
Difference +4 points +6 points +10 points +10 points +7 points +11 points

Investment home loan rates

Date 1-year fixed 2-year fixed 3-year fixed 4-year fixed 5-year fixed Variable
February 2017 4.34% 4.28% 4.32% 4.68% 4.74% 4.62%
February 2018 4.51% 4.46% 4.54% 4.86% 4.96% 4.91%
Difference +17 points +18 points +22 points +18 points +22 points +29 points
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