Compare Fixed Rate Home Loans for February 2024

Fixed rate home loan can be a great option if you'd prefer to lock in your repayments, rather than risk bank interest rate changes.  While fixed rates have been rising recently, some lenders are starting to makes some rate cuts so it might be a good time to lock in a deal. We compare fixed rate loans from more than 80  lenders to help you find one that’s right for you.

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Fixed rate home loan comparisons on Mozo - last updated 22 February 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Home Fixed Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.80% p.a.
    fixed 3 years
    6.05% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

    Compare
    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.64% p.a.
    fixed 3 years
    6.56% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 20% deposit required.

    Compare
    Details
  • Fixed Rate Loan with Orange Advantage

    Orange Advantage, Owner Occupiers, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.29% p.a.
    fixed 2 years
    6.23% p.a.

    Know exactly what your repayments will be, and you can fix your rate for up to 5 years. No monthly, annual fee or transaction fees. Free additional repayments (less than $10,000 p.a.). Valid for loans of $50,000 up to $2,000,000.

    Compare
    Details
  • Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

    Compare
    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.64% p.a.
    fixed 2 years
    6.52% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 20% deposit required.

    Compare
    Details
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^See information about the Mozo Experts Choice Home loans Awards

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Want to compare variable home loan options? - last updated 22 February 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Home Variable Rate

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    6.15% p.a.
    6.15% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

    Compare
    Details
  • Straight Up

    Obliterate, Owner Occupier, Principal & Interest, <50% LVR

    variable rate
    comparison rate
    Initial monthly repayment
    6.24% p.a.
    6.24% p.a.

    Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details
  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    variable rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    6.11% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

    Compare
    Details

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Fixed rate home loans monthly snapshot: February 2024

To fix, or not to fix in Feb 2024? 

Over the last little while, we’ve seen plenty of banks reduce their fixed-rate home loans, including heavy-hitters like AMP Bank, Bank Australia, Bank of Queensland, Bendigo Bank, Great Southern Bank, and Macquarie.

While you might be tempted to latch on to these deals after the trauma of the RBA interest rate rises we’ve witnessed since May 2022, as a way to protect yourself from any more rate rises, the fixed-rate cuts we’re seeing may instead be a sign of better things to come… 

Mozo finance expert, Peter Marshall, says that while fixed rates are becoming more competitive now, it could be worth sticking with your variable for the time being. 

“If you’re on a pretty good variable rate, you’ll probably be better off sticking with that a bit longer. Wait for fixed rates to come down more,” he said. 

“When lenders get confident the RBA will cut rates – if inflation drops, unemployment rises, and so forth – we’ll start to see more fixed rates decrease.”

We’re at the peak of the rate tightening cycle, meaning no more interest rate hikes 

Marshall also firmly believes the RBA won’t hike again – a sentiment echoed in forecasts from the Big Four Banks.

“We’re at the peak of the cycle. It would take something extraordinary and unexpected to change that – and I can’t see where that would come from,” he said. 

The average 1-year fixed rate is currently lower than the average variable rate home loan

However, if you’re still keen on the idea of fixing your home loan rate, it is worth noting that for owner-occupiers, with a $400,000 loan, and a loan-to-value ratio (LVR) of <80%, the: 

  • Average variable rate is 6.85% p.a., and the 

  • Average 1-year fixed rate is 6.53% p.a., 

According to the Mozo database on 1 February, 2024. 

So, with the possibility of cash rate cuts coming as early as September 2024, you’ll need to do some maths and decide for yourself if it’s worth locking in a lower fixed rate for a year, potentially saving more money than if you got a variable rate now and waited for it to come down. 

Lowest fixed-rate home loans in February 2024

For OO, P&I loans of $400k, at <80% LVR in the Mozo database on 1 February, 2024. 

  • 1 year: Illawarra Credit Union | 5.90% p.a. (7.09% p.a. comparison rate*) | The Works Fixed Home Loan Package

  • 2 years: Australian Mutual Bank | 5.53% p.a. (6.30% p.a. comparison rate*) | First Home Buyers 2 Year Fixed Rate (Special Offer)

  • 3 years: Australian Mutual Bank | 5.48% p.a. (6.24% p.a. comparison rate*) | Fixed Rate Home Loan

  • 4 years: HSBC | 5.69% p.a. (6.37% p.a. Comparison rate*) | Fixed Rate Home Loan Package

  • 5 years: Australian Mutual Bank | 5.63% p.a. (6.16% p.a. comparison rate*) | Fixed Rate Home Loan. 

Aside from looking for a lower rate, make sure you compare fixed-rate home loan deals, too. At the moment, several cashback offers are running from lenders like Newcastle Permanent, Bank of Queensland, and Reduce Home Loans, just to name a few. 

You’ll also want to consider how application and annual fee waivers can help you to save some on some of the costs associated with getting a home loan. 

Compare fixed rates using the table at the top of this page.

Show transcript

When you’re taking out a mortgage, you’ll have the option to fix your loan. But what exactly is a fixed rate?

While variable rates move in line with the market, fixed rates remain the same until the fixed period ends.

That means you’ll know exactly how large your repayments will be, allowing you to budget accordingly.

The idea behind fixed rates is they allow you to lock in a good rate for your home loan, and guard against interest rate hikes.

The downside is that if interest rates start to drop, you won't enjoy any of the benefits.

Fixed rate terms usually range from 1 year up to 10 years, but the more popular options are in the 1 to 3 year range.

Once your fixed period ends, you’ll have the choice of fixing another term or going with a variable rate.

Something to watch out for is the revert rate.

That’s the rate that kicks in once your fixed period is over, and is usually much higher than the market rate.

What is a fixed rate home loan? 

 A fixed home loan rate is a loan with an interest rate that is set for a certain period of time. Most banks in Australia offer fixed rate terms of between one and five years. 

  • The benefit of a fixed rate home loan is that: during the fixed rate period your home loan repayments won’t be affected by any rate changes, which means you can budget accordingly. 
  •  At the end of the fixed period: borrowers will have the option to select another fixed home loan term or switch to a variable interest rate loan.  

Mozo top tip:  The revert rate of fixed rate loans (the rate you’ll get at the end of the fixed period) can often be higher than the market rate so shop around at the end of the fixed term or negotiate a better deal with your lender to avoid getting stung. 

The fixed rate home loan cliff 

There has been a lot of media attention around the fixed rate cliff which refers to the vast number of borrowers who have / will be coming off fixed rate home loans in 2023/24. 

If you fixed your home loan during the covid pandemic when rates were at record lows and you’re now at the point where your fixed rate home loan is due to expire, it is important that you carefully review your home loan options as home loan interest rates have risen substantially in the past 18 months.  

 The Mozo team have developed a fixed rate ending calculator to help you work out what your new home loan repayments might be when your fixed rate loan ends. Ideally you should be considering your options for refinancing at least 6 weeks prior to your fixed rate loan ending.    

How to compare fixed rate home loans

There are several factors that you should take in consideration when comparing fixed rate home loans. They include:  

  •  Interest rate:  The interest rate is what a lender charges on a per annum basis to let you borrow money. It determines the overall affordability of a loan, which is why many people consider a low interest rate the most important factor in their home loan search.  To see the average fixed interest rates offered on different fixed loan terms, head to Mozo's home loan interest rates page for the latest information and expert commentary from our spokesperson, Peter Marshall. 
  • Comparison rate: When comparing fixed rate home loans, don’t neglect the comparison rate. This gives a more accurate picture of a loan’s total costs by factoring in most fees (government charges and fees that only apply in specific circumstances are excluded). Lenders are required to list the comparison rate alongside the headline interest rate wherever it appears.
  • Fixed loan term:  This is the period of time that the fixed rate will apply. Lenders typically offer fixed terms ranging from one to five years, with different interest rates available on each option.
  • Fees.  Carefully review any fees. Common fees you might encounter with a fixed rate home loan include an application fee, annual fee, and break fee (the latter only applies when you terminate a fixed rate arrangement prematurely, such as by paying off your loan early or refinancing to another one). One-off fees may be easy to tolerate, but ongoing fees or fees for use of certain features can add up over time. 
  • Loan features: While fixed rate home loans offer stability, this often comes at the cost of flexibility and features. That’s not to say they can’t offer the same features as variable rate loans such as extra repayments, just that there are often limits on how they can be used. 
  • Other home loan perks:  There’s plenty of competition in the Australian home loan space, so it’s not uncommon to see lenders offering perks to entice potential customers.

 How to find the best fixed rate home loan 

 Step 1: Identify your needs

Knowing that your interest rate won’t change can make it easier to budget and provide peace of mind in times when interest rates are rising. But what’s the best amount of time to lock in a rate? And how can you be sure a loan is actually good value for money?  

The answers to these and other questions will depend on your needs as a borrower. Use an online repayment calculator to see if you can afford to service a mortgage at a particular interest rate. And consider whether your financial goals would be more aligned with a short-term arrangement or a longer one.  

Step 2: Compare fixed loan options from lenders

The fixed home loan table above provides a snapshot of some loans in the market, but you can browse the full range of fixed rate home loans we compare too. This can give you an idea of the rates currently being offered by the major banks and other lenders. 

The features on offer also deserve some thought. For example, loans differ in the amount of extra repayments you’ll be able to make without being penalised. Make sure you’re aware of these conditions ahead of time and try to limit your search to loans with a margin of freedom that’s acceptable to you. It can also be helpful to read home loan customer reviews and ask friends and family members about their experience with a particular loan or lender. Testimonials can provide useful information about things beyond the loan itself, such as the quality of the banking app that comes with it and the customer service provided by staff.

Step 3: Read the fine print 

Taking out a home loan will be one of the largest financial decisions you’ll make in your life, so make sure you’re familiar with all the details before you sign up. The product disclosure statement, which should be available on a lender’s website, will outline all the important bits of information — including any fees, restrictions, and penalties that might apply. 

Read it carefully and don’t hesitate to ask your lender if there’s anything you’re unsure about. 

Fixed Rate Home Loan Pros and Cons

 Advantages of a fixed rate home loan 

  •  Safeguard against interest rate increases 
  •  Increased certainty 

 Safeguard against rate hikes

The RBA makes decisions to move the cash rate based on how the economy is faring, and banks sometimes make out-of-cycle decisions to hike their mortgage rates when profit margins are being squeezed. If either of those situations occur, having your rate locked in for a set period means you won’t be affected, and can continue to benefit from lower rates. 

Increased certainty

Fixing your home loan means your repayments will stay the same, at least until the fixed period ends. This makes it easier to plan for other expenses, as you’ll know with certainty how much money you’ll have left over after each scheduled repayment. 

Disadvantages of a fixed rate home loan

  • You won’t benefit from rate cuts 
  • Limits on features 
  • Break fees 

 You won’t benefit from rate cuts

Fixing your interest rate means it stays the same for the duration of the fixed term, regardless of whether official interest rates move up or down. This means that while you’ll be protected in the case of any rate hikes, you won’t see any benefit if rates go down. 

Limits on features

You might find that fixed rate loans aren’t as rich in features as the average variable rate loan. And even if you find one that comes with the ability to make extra repayments, there might be fees or limits that can cut into the overall benefits offered.  For example, your fixed loan might cap extra repayments at $10,000 per year, meaning you’ll incur penalty costs if you exceed this amount.

Break fees 

Exiting a fixed rate loan before the agreed date can be quite costly. So if you want to refinance to another loan or make significant adjustments to your current one, make sure you ask your lender to explain the fees involved and how they’re calculated.

Fixed rate home loans: pros and cons

What are the features of a fixed rate home loan?

There was a time when fixed rate home loans were light on features, such as offset accounts and the ability to make extra repayments. But many nowadays offer the same extras as variable home loans, albeit with more conditions and restrictions. We’ve detailed a few below.

  • Extra repayments: With a fixed rate home loan you may be able to make extra repayments, however there will most likely be a limit to how much you can make each year or over the term of the loan.

  • Redraw: If you can make extra repayments you may also have the ability to retrieve them using a redraw facility. A fee and minimum redraw amount might apply.

  • Offset account: Some fixed loans will have an offset loan facility, but unlike a variable rate home loan where you can offset 100% of the loan amount, you might only be able to offset a portion, such as 10-40% of the loan.

  • Repayment flexibility: Just as with variable rate home loans, most fixed loans will allow you to select the repayment frequency - weekly, fortnightly and monthly - that suits you.

  • Split loan: Many fixed rate loans will have the option of splitting a portion of the fixed loan with a variable rate. This means you get the benefits of rate certainty on the fixed portion of your loan and added flexibility on the variable portion.

Is a fixed rate home loan the right choice for me?

During periods when interest rates are heading up, signing up for a fixed rate and opting out of all the uncertainty might seem tempting. But you should weigh the pros and cons before making a decision.

One thing to keep in mind is that fixed rates tend to be more expensive than variable rates because If interest rates are predicted to rise, lenders will set their fixed rates higher to get ahead of the curve.

So instead of asking yourself whether a fixed rate will save you money, it might make more sense to ask what type of loan you want. If you would rather one with predictable repayments and don’t mind a few restrictions when it comes to features, a fixed rate could suit you.

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JP Pelosi
RG146
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

Fixed rate home loan FAQs

What is a fixed rate home loan? 

A fixed rate home loan is a loan with an interest rate that is locked in for the duration of the term. This means you’ll know exactly what your repayments will be from the start and won’t have to worry about them changing until the fixed term ends.

How do fixed rate home loans compare on fees?

There are some common fees that are payable upfront, and some fees payable on an ongoing basis or at loan termination with fixed rate home loans.

These include:

  • application fee

  • service fee (monthly or annual)

  • discharge fee

If you decide to switch loans during the fixed period or pay out the loan early you might have to also pay a break fee that will be determined by your lender based on the rate you’re currently

How do fixed rate loans compare on cost?

This is where Mozo's handy calculators come in. We can help you compare fixed rate home loans with variable rate loans or compare fixed rate terms to find the best home loan for you.

Here's a rundown of our top tools:

  • Market snapshot table: A selection of advertised fixed rate deals to help you compare rates and features of banks with fixed rate loans keen for your business. You'll find this table at the top of this page.
  • Repayment calculator: Mozo's home loan comparison table will help you to crunch the numbers based on your loan amount and the value of the property. You can then filter by the fixed rate term and our mortgage repayments calculator will show you how much your monthly repayments will be.
  • Comparison Calculator: Can't decide between two fixed rate loans? Simply plug in the details of each loan into the calculator and it will show you which loan will be cheaper.
  • Rate change calculator: Wondering how long you should fix for or when it would be cheaper to get a variable rate loan? Play around with our rate change calculator to see how much your repayments would go up on a variable rate if rates were to change.
  • Reviews. Thousands of customers have reviewed their home loan on Mozo so read up to see what they say about the fees and costs of their fixed loans before you take the home loan plunge. Check out our home loan reviews here.

What are my options once the fixed term is up?

Once your fixed term ends, the revert rate will automatically kick in unless you negotiate an alternative with your lender. This rate is typically much higher than the rate you signed up for, and can make quite a large impact on your monthly repayments.

Are fixed rate home loans better than variable rate home loans?

A fixed rate can be preferable if you want to know how much you’ll be repaying each month and don’t want to be blindsided by any rate hikes. In contrast, variable rates fluctuate over time and could require you to make constant adjustments to your monthly budget.

Is it a good time to take out a fixed rate home loan?

Fixed rates offer more predictability than variable rates when it comes to monthly repayments, but there are tradeoffs.

Fixed rates are priced according to future expectations, making them a good barometer for where interest rates are heading. For the fixed rate to be worthwhile, interest rates would need to rise beyond the lender’s expectations. This is why fixed rates are always a bit of a gamble — consumers will rarely have access to the same data lenders have, making it very difficult to beat them on pricing.

Can I switch to a fixed rate home loan?

Yes. If you’re currently on a variable rate and want to switch, you can call your lender to do so or commence the process yourself via online banking or your lender’s app.

What is the worst thing about a fixed rate loan?

There are some aspects to a fixed rate home loan that borrowers might not appreciate. For one, many limit the amount of extra repayments you can make, or even restrict them altogether. If you come into a lump sum of money or generally have plans to pay off your loan ahead of schedule, this can be a major impediment.

Fixed rate home loans also come with some rather expensive break costs, which will apply if you want to sell your property, top up your loan, pay off your loan early, or refinance to a cheaper option.

What is a mortgage rate lock?

Even if you’ve been approved for a fixed rate loan, your lender can change their rates in the time it takes to finalise your application and advance your funds. That means you might lose out on the low fixed rate that you were drawn to in the first place.

A mortgage rate lock can help by locking in the rate you were offered at the time of approval. Most lenders will charge a fee (either a flat fee or a percentage of the loan balance), but it can be worth it if you’re able to save money in the long run.

Home Loan Reviews

Westpac Home Loan
Overall 1/10
Avoid Westpac at all costs

Westpac have proven to be completely incompetent, lied and their customer service is as poor as I've ever experienced. Even a complaint direct to the Managing Director proved a total waste of effort, as she never had the courtesy to even respond. Australia's worst bank.

Read full review

Westpac have proven to be completely incompetent, lied and their customer service is as poor as I've ever experienced. Even a complaint direct to the Managing Director proved a total waste of effort, as she never had the courtesy to even respond. Australia's worst bank.

Price
2/10
Features
3/10
Customer service
1/10
Convenience
7/10
Trust
1/10
Less
Ian, Victoria, reviewed 2 days ago
Macquarie Offset Home Loan (Package)
Overall 10/10
Great service and comparable rates

We have been with Macquarie for over a year and a half. We have our mortgage with them and combined offset bank accounts. They are very competitive in terms of their interest rate. They have great customer service and good services. We like the fact that we can have up to 7 separate offset accounts which we use to put separate savings aside for. We haven’t had any issues however I know their customer service is great.

Read full review

We have been with Macquarie for over a year and a half. We have our mortgage with them and combined offset bank accounts. They are very competitive in terms of their interest rate. They have great customer service and good services. We like the fact that we can have up to 7 separate offset accounts which we use to put separate savings aside for. We haven’t had any issues however I know their customer service is great.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Tanya, Western Australia, reviewed 2 days ago
Westpac Rocket Repay Home Loan
Overall 10/10
Where else but Westpac..

Was going to leave the bank for better rates. Retention office made contact with us and provided interest rates much lower than all other banks. Now, I make contact annually direct to the retention office to try and get a better deal. Easy to deal with, contact was immediate by either phone or email. Initial set up of homeloan in branch was easy and Westpac employee was extremely helpful and genuinely wanting to help.

Read full review

Was going to leave the bank for better rates. Retention office made contact with us and provided interest rates much lower than all other banks. Now, I make contact annually direct to the retention office to try and get a better deal. Easy to deal with, contact was immediate by either phone or email. Initial set up of homeloan in branch was easy and Westpac employee was extremely helpful and genuinely wanting to help.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Renee, Victoria, reviewed 2 days ago

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