What happens at the end of a fixed home loan term?

At the end of the fixed rate term, you are generally able to refinance with your existing lender, or another, and depending on your preferences and needs, you may choose a fixed or variable rate, or a split rate.

Compare 1-year fixed rate home loans

With interest rates rising, some borrowers are fixing their home loans for the certainty of locking in their rates over a set period. We’ve sorted our comparison table to display 1-year fixed rate home loans from our Online Partners for owner-occupiers making principal and interest repayments. The results shown are sorted by highest Star Rating, then lowest comparison rate, then alphabetically by provider name.

Joshua Sale

Group Manager, Research & Ratings

Alasdair Duncan

Senior Finance Journalist

Instantly compare 5400+ Canstar expert rated loans based on the inputs below

Loan amount

ANZ | Owner Occupied | LVR ≤80% | Fixed for 1 year

Cashback

via a Canstar Certified Mortgage Broker

Fees & charges apply, Australian Credit Licence 234527 | ^#T&Cs apply

Westpac | Premier Advantage Options Home Loan | Owner Occupied | LVR 70-80% | Fixed for 1 year

via a Canstar Certified Mortgage Broker

Fees & charges apply, Australian Credit Licence 233714

You’ve seen all your search results.

We couldn’t find any other products from our Online Partners, so here are a few from other providers…

Pacific Mortgage Group | Owner Occupied | LVR ≤90% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 364320

Up | Up Home | Owner Occupied | LVR ≤90% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 237879

Tiimely Home | Livein | Owner Occupied | LVR ≤90% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 496431

MOVE Bank | Everyday Home Loan | Owner Occupied | LVR ≤95% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 234536

G&C Mutual Bank | Owner Occupied | LVR ≤95% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 238311

AMO Group | Owner Occupied | LVR ≤80% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 392337

Australian Mutual Bank | Owner Occupied | LVR ≤95% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 236476

HSBC | Home Loan Package | Owner Occupied | LVR 60-80% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 232595

Illawarra Credit Union | The Works Package Home Loan | Owner Occupied | LVR ≤95% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 245576

Horizon Bank | Rate Home Loan | Owner Occupied | LVR 70-95% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 240573

Orange Credit Union | Owner Occupied | LVR ≤95% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 240768

Easy Street Fin Services | Easy Street | Owner Occupied | LVR ≤95% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 231204

NRMA Insurance | Livein | Owner Occupied | LVR ≤90% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

QANTAS | Livein | Owner Occupied | LVR ≤90% | Fixed for 1 year

Points

Link Not Supplied

Fees & charges apply, Australian Credit Licence 237879 | ^#T&Cs apply

Bank Australia | Basic Home Loan | Owner Occupied | LVR 70-80% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 238431

Hume Bank | Myblue | Owner Occupied | LVR 60-80% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 244248

MOVE Bank | Offset Home Loan | Owner Occupied | LVR ≤95% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 234536

LCU | Introductory Home Loan | Owner Occupied | LVR ≤80% | Fixed for 1 year

Link Not Supplied

Fees & charges apply, Australian Credit Licence 240807

Showing 20 of 122 results

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Canstar rating

Unsure of a term in the above table? View glossary

The initial results in the table above are sorted by Star Rating (High-Low) , then Comparison rate^ (Low-High) , then Provider Name (Alphabetical) . Additional filters may have been applied, see top of table for details.

What is a 1-year fixed rate home loan?

A one-year fixed rate home loan is one in which the interest rate you’ll pay on the loan is locked in or ‘fixed’ for a period of a year. This means that your required repayments will remain consistent for that whole length of time, irrespective of whether your lender raises or lowers interest rates.

Generally speaking, lenders offer fixed home loans for a duration of one, two, three, four or five years, as well as variable home loans, with rates that can go up or down in line with the cash rate. The RBA explains banks consider funding costs, competition from other banks for borrowers, and the risk of default from existing borrowers in setting their interest rates. Some lenders offer ‘split rate’ loans, combining fixed and variable components.

If you’re curious about one-year fixed home loan rates, below are some answers to the most frequently asked questions about one-year fixed home loan rates. Otherwise, you can also use the comparison table at the top of the page to compare current home loans on the market from our Online Partners.

Frequently Asked Questions about 1-Year Fixed Home Loans

What are potential advantages of a 1-year fixed home loan?

One-year fixed loans have a number of potential advantages, including:

The certainty of knowing that your repayments will remain stable and you will pay the same from month to month, especially at a time when variable rates are going up.
The fact that shorter fixed-rate loans such as those that are fixed for one year can be cheaper than longer fixed rates, meaning that if you wish, you can lock your rate in for a year and assess the market conditions at the end of that year.
The flexibility that comes with locking in a rate for a short time, and knowing you have your options open at the end of the one-year period.

What are potential drawbacks of a 1-year fixed home loan?

One-year fixed home loans can also come with some potential drawbacks, including:

The fact that you may have to pay a break fee if you choose to end your fixed loan term early or refinance to another institution.
The lack of features that come with some variable rate loans, such as offset accounts and redraw facilities.
The fact that you may be penalised for making additional repayments. Note that there is some flexibility with this, depending on the lender, and some will allow borrowers to make additional repayments on a fixed-rate loan.
The potential to miss out on a lower interest rate if interest rates fall but you have locked yours in with your lender.

Can you break a 1-year fixed home loan?

If you want to break your fixed-rate loan before the fixed term ends, it could be possible, depending on the terms and conditions of the loan, but you might be charged a ‘break cost’ or a ‘break fee’. This applies to one-year fixed home loan rates as well as other kinds of fixed home loans, and it is intended to compensate the lender for loss of profits they might face as a result of you breaking the terms of the contract.

Break fees will vary, but are generally calculated with consideration of the interest rate you locked in (compared with the current interest rate), how much time remains on your fixed-rate term, and the loan amount you originally borrowed.

How long can you fix a home loan for?

The length of time you choose to fix a home loan is negotiated between you and your lender. You can generally choose the time period for which you lock in or ‘fix’ your interest rate – depending on who you take out a home loan with and what your needs and priorities are, this could be one, three, four, five or even 10 years.

How do you lock in a low-interest rate?

When you take out a one-year fixed rate home loan, or any fixed rate home loan for that matter, it is important to keep in mind that your interest rate will typically be locked in at the date you settle on the property, not the date you applied.

If interest rates have changed between the time you apply for a fixed loan product and the time you settle, you may end up paying a higher rate. Note that some institutions will lock in a rate before settlement if you are willing to pay a lock-in fee to guarantee it.

What happens at the end of a 1-year fixed home loan term?

When the 12 months of your fixed term home loan come to an end, the loan will typically revert to a variable rate for the remainder of the term, which could be many more years.

Generally, at the end of the fixed-rate term, you are able to refinance with your existing lender, or another. Depending on your needs and preferences, you can refinance to a fixed, variable or split rate home loan.

Which lenders have the lowest 1-year fixed-rate home loans?

If you’re in the market to compare 1-year fixed home loan rates or find a loan that suits your particular needs, you can compare home loans at the top of this page to find a lender with a competitive rate. You can also view the winners of Canstar’s Fixed Rate Home Loan Awards to find out which lenders offer value for money to Australian home buyers.

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Looking for an award-winning product or to switch providers or brands? Canstar rates products based on price and features in our Star Ratings and Awards. Our expert Research team shares insights about which products offer 5-Star value and which providers offer outstanding value overall. We also reveal which providers have the most satisfied customers in our dedicated Customer Satisfaction Awards.

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About our home loan experts

Alasdair Duncan, Senior Finance Journalist

Alasdair Duncan is a Senior Finance Journalist at Canstar, specialising in home loans, property and lifestyle topics. He has written more than 200 articles for Canstar and his work is widely referenced by other publishers and media outlets, including Yahoo Finance, The New Daily, The Motley Fool and Sky News. He has featured as a guest author for property website homely.com.au. In his more than 15 years working in the media, Alasdair has written for a broad range of publications. Before joining Canstar, he was a News Editor at Pedestrian.TV, part of Australia’s leading youth media group. His work has also appeared on ABC News, Junkee, Rolling Stone, Kotaku, the Sydney Star Observer and The Brag. He has a Bachelor of Laws (Honours) and a Bachelor of Arts with a major in Journalism from the University of Queensland. When he is not writing about finance for Canstar, Alasdair can probably be found at the beach with his two dogs or listening to podcasts about pop music. You can follow Alasdair on LinkedIn and Twitter.

Joshua Sale, Group Manager, Research & Ratings

Joshua Sale is responsible for developing the methodology and delivering Canstar’s flagship Star Ratings, as part of Canstar’s Research Team. With tertiary qualifications in economics and finance, he enjoys helping Australians find more suitable financial products by transforming complex calculations into a consumer-friendly Star Rating that explains the values and benefits of different financial products. As one of Canstar’s company spokespeople, Joshua is confident participating in print, radio and broadcast journalism interviews. He has participated in interviews with the Australian Financial Review, news.com.au and Money Magazine, along with other leading media outlets, discussing topics such as home loan equity, banking incentive schemes, digital wallets and wider finance trends. You can follow Joshua on LinkedIn. Have a media enquiry, and interested in featuring Joshua as a financial expert and commentator? Contact Canstar’s Media Team today.

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Important information

For those that love the detail

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.

Canstar may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it’s an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product's rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar. Payment of fees for ads does not influence our Star Ratings. See How We Get Paid to find out more.

Home loan Star Ratings are updated monthly. The results don’t include every provider in the market and we may not compare all features relevant to you. Current rates and fees are displayed and may be different to what was rated. You can find a description of the initial sort order below the table. You can use the sort buttons at the top of each column to re-order the display. Learn more about our Home Loans Star Rating Methodology. The rating shown is only one factor to take into account when considering products. The table defaults to display only home loans available to somebody borrowing 80% of the total loan amount but you can use the filters to change this. Similar products might have different features and fees depending on the amount you borrow. Contact the lender for details.

The products and Star Ratings in the table might not match your exact inputs in the selector. Sometimes the methodology uses profiles with categories or bands (e.g. income, loan amount or monthly spend), but sometimes a single methodology, without any categories or bands, is applied. The results will show the products that most closely match your selection, based on our profiles. If you are unsure about any terms used in the comparison table please refer to the glossary.

What is a Target Market Determination?

A Target Market Determination (‘TMD’) is a document that explains which people particular financial products may be suitable for (the target market) and sets out any conditions around how financial products can be distributed to consumers.

Why do product issuers provide Target Market Determinations?

From 5 October 2021, TMDs are compulsory for most financial products.

Issuers and distributors of financial products must take reasonable steps that are likely to result in financial products reaching consumers in the target market defined by the product issuer.

We recommend that you consider the TMD before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. Canstar provides information about credit products. We’re not suggesting or recommending a particular credit product for you. If you decide to apply for a loan, you will deal directly with the provider, not with Canstar. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. It’s important you check rates and product information directly with the provider. For more information, read our Detailed Disclosure. ^Read the Comparison Rate Warning.

Before you elect to terminate or modify existing lending arrangements, we recommend you consider (i) your personal circumstances, and (ii) any associated fees, exit costs and application costs that may be applicable as well as the impact these changes could have on you. We suggest you consider seeking independent advice from a qualified adviser.

“Interest-only loan” generally means a loan where you will only pay interest during the interest-only term. That means you won’t be making payments which reduce debt during the interest-only term.

On some Home Loan products, you can choose to be referred to a mortgage broker who has been certified by Canstar according to our certification process. Mortgage brokers may not be able to offer loans from every provider. The loans included in the table are loans that Canstar Certified Mortgage Brokers can discuss with you, if you choose to do so. There may be more suitable loans for your personal circumstances.

If a broker successfully completes the Canstar certification process, they may pay Canstar a fee to use the official Canstar Certified Mortgage Broker badge. Canstar may earn a fee from the Canstar Certified Mortgage Broker, or the broker group they are affiliated with, if you settle a Home Loan via a Canstar Certified Mortgage Broker after being referred to the broker by Canstar. Fees payable may vary depending on the home loan product and product provider.

Not all mortgage brokers available in the market have undertaken the certification process. Canstar has invited a limited number of brokers to undertake the process, and only those brokers who have successfully completed the certification process are entitled to use the logo and wording “Canstar Certified Mortgage Broker”. Being certified as a Canstar Certified Mortgage Broker is not a representation that the holder’s mortgage broking services are superior to all other brokers who do not hold the certification.

Canstar Certified Mortgage Brokers are independent contractors, operate under their own Australian Credit Licence, or as Credit Representatives under an Australian Credit Licence, and are not Canstar’s agent or representative. They are not Home Loan product providers, but they can make recommendations to you about Home Loan products that may suit your needs. The broker may require you to enter into an agreement with them in relation to the services they can provide. Canstar will have no knowledge of or input into the advice and product recommendations you receive from a Canstar Certified Mortgage Broker.

If you choose to be referred to a Canstar Certified Mortgage Broker, you will be taken to have accepted Canstar’s Terms of Use.

Your use of the Canstar Group’s Mortgage Broker Referral tool does not mean that you will be eligible to be approved for any particular home loan.

Compare 1-year fixed rate home loans

You’ve seen all your search results.

Home Loans

What is a 1-year fixed rate home loan?

Frequently Asked Questions about 1-Year Fixed Home Loans

What are potential advantages of a 1-year fixed home loan?

What are potential advantages of a 1-year fixed home loan?

What are potential drawbacks of a 1-year fixed home loan?