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 |
