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New lowest fixed rate hits the market at 4.94% - is now the time to lock in?
24 July 2025
Greater Bank has cut a range of fixed mortgage rates, taking its lowest rate down to just 4.94% – the new lowest fixed rate currently available in the Australian market.
Greater Bank’s lowest fixed rates for owner-occupiers
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| Greater Bank’s new lowest fixed rates | |
| Term | New rate from |
| 1-year | 5.44% |
| 2-year | 4.94% |
| 3-year | 4.94% |
| 4-year | 5.34% |
| 5-year | 5.34% |
Source: Canstar. Notes: based on owner occupied loans paying principal & interest. LVR requirements apply. An annual fee of $395 applies.
Greater Bank is not the only lender taking the knife to fixed rates. Canstar.com.au analysis shows around 50 banks have cut at least one fixed home loan rate in the past two months as banks continue to price in the possibility of another cash rate cut, potentially as soon as 12 August.
Which lenders are offering the lowest fixed rates?
A total of 14 lenders now offer at least one fixed rate under 5%, including from Greater Bank, Bank of Queensland, Heritage Bank and Australian Mutual Bank.
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| Lowest fixed rates on Canstar.com.au | ||
| Term | Lender | Lowest rate from |
| 1-year | Pacific Mortgage Group | 4.99% |
| 2-year | Greater Bank | 4.94% |
| 3-year | Greater Bank | 4.94% |
| 4-year | People’s Choice, BOQ | 5.29% |
| 5-year | People’s Choice, BOQ, Heritage Bank | 5.29% |
Source: Canstar. Excludes eco loans.
Fixed rates are now in the 4’s – does that make them a good deal?
The answer depends on a multitude of variables including:
- how many more RBA cash rate changes eventuate in the fixed rate term;
- whether banks pass on the changes in full to variable mortgage rates;
- what rate you’re currently on;
- what fees you are currently paying;
- if you stick with variable, whether you successfully manage to renegotiate your variable rate in the fixed term; and
- what type of loan suits your finances and your financial goals, including whether you’ll want an offset account or to make extra repayments in the fixed term.
That’s a lot of variables.
For anyone looking to pay as little interest to their bank as possible, Canstar put a handful of scenarios to the test to work out which rate might see a borrower pay less interest in the next two years – the lowest fixed rate versus the lowest variable.
If the average borrower with a $600,000 loan and 25 years remaining switched to the lowest 2-year fixed rate at 4.94% instead of the lowest variable rate at 5.34%, and there was just one more standard RBA cut on 12 August, then the person opting for a fixed rate could end up paying $1,918 less in interest in the next 2 years.
However, if there are two standard RBA rate cuts, in August and November, as CBA is forecasting, then fixing could end up costing $553 more in interest charges.
If there are four cuts, as Westpac is forecasting in August, November, February and May then yes – fixing, even at the lowest rate, is probably not the greatest idea (although it still depends on what variable rate you are currently on).
Lowest 2-year fixed rate vs the lowest variable on a $600,000 loan – which comes out on top under different scenarios?
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| No. of 0.25% pt cuts to come | Which comes out on top after 2 yrs? |
| 1 more cut | Fixed by $1,918 |
| 2 more cuts | Variable by $553 |
| 3 more cuts | Variable by $2,642 |
| 4 more cuts | Variable by $4,353 |
Source: Canstar. Notes: based on an owner-occupier paying principal and interest with a $600K loan in August 2025 and 25 years remaining. Assumes cuts are in August, November, February and May. Calculations are for illustrative purposes only. They only reflect the interest charges and do not include fees or any extra repayments. Lowest rates exclude green and introductory rate loans.
What should I do?
While the cash rate will almost certainly come down, no one – not even the RBA – knows how far it will fall in coming months, with the minutes of the July Board meeting revealing that it was “difficult to determine with precision how far interest rates needed to fall before monetary policy was no longer restrictive”.
So, understand what could happen to the cash rate, knowing that things can and do change, but perhaps more importantly, work out what suits your finances better. Then take the time to do your research to find a kick-ass rate (sorry, the language is for emphasis), because doing something is usually better than doing nothing, especially if you’ve let your mortgage run wild over the last few years.
Owner occupied
20% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
10% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
40% min deposit
Redraw facility
Owner occupied
40% min deposit
Redraw facility
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
- Greater Bank’s lowest fixed rates for owner-occupiers
- Which lenders are offering the lowest fixed rates?
- Fixed rates are now in the 4’s – does that make them a good deal?
- Lowest 2-year fixed rate vs the lowest variable on a $600,000 loan – which comes out on top under different scenarios?
- What should I do?
Owner occupied
20% min deposit
Redraw facility
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