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Plenty of fixed rate home loan competition

While all the attention in August was on whether banks would pass on the RBA cut to their variable loans for existing customers, fixed home loan interest rates for new customers have been quietly falling.

Can’t see the current record-low interest rates getting much lower? Perhaps you’d be interested in a 3-year or 5-year fixed home loan.

CANSTAR has noted some strong competition in the fixed home loan space since the RBA’s 2nd of August decision to cut the cash rate down by 25 basis points to 1.5 per cent, with interest rate cuts up to double (or more) the 25 basis point cash rate cut.

We’ve outlined some of these cuts below, also revealing the current lowest 3-year and 5-year fixed rate home loans on our database.

August Rate Changes – 3 Year Fixed Rate Home Loans

(Residential 3 Year Fixed loans available for a loan amount of $150,000 available for Principal and Interest Repayments)

Company Product Name August Rate Change New Rate Comparison Rate*
The Mutual Premium Fixed 3 yrs -0.50% 3.99% 4.56%*
Bank of Melbourne Residential Fixed 3 yrs -0.44% 4.00% 5.06%*
BankSA Residential Fixed 3 yrs -0.44% 4.00% 5.11%*
St.George Bank Residential Fixed 3 yrs -0.44% 4.00% 5.12%*
Westpac Fixed Options 3 yrs -0.44% 4.05% 5.09%*
Westpac Premier Advantage Fixed Options 3 yrs 150k+ -0.44% 3.85% 4.77%*
SCU Residential Fixed 3 yrs -0.41% 3.69% 4.70%*
Australian Military Bank Fixed Rate 3 yrs 95% -0.35% 3.99% 4.90%*
Pacific Mortgage Group Residential Fixed 3 yrs -0.34% 3.65% 3.61%*
Aussie Optimizer Fixed PI 80 3 yrs -0.30% 3.99% 3.89%*
Aussie Optimizer Plus Fixed PI 80 3 yrs -0.30% 3.99% 3.92%*
Aussie Optimizer Fixed PI 3 yrs -0.30% 3.99% 3.89%*
Aussie Optimizer Plus Fixed PI 3 yrs -0.30% 3.99% 4.08%*
Homeloans Optima Fixed – Owner Occupied PI 3 yrs -0.30% 3.98% 4.12%*
Macquarie Bank Basic Fixed Owner Occupied PI 3 yrs -0.30% 3.99% 5.06%*
Macquarie Bank Offset Fixed Owner Occupied PI 3 yrs -0.30% 3.99% 5.43%*
Regional Bank Australia Steady Rate 3 yrs -0.30% 3.99% 4.91%*
Victoria Teachers Mutual Bank Complete Fixed – Owner Occupied 3 yrs -0.30% 3.79% 3.91%*
Victoria Teachers Mutual Bank First Home Buyers Package Complete Fixed – Owner O -0.30% 3.79% 3.87%*
Victoria Teachers Mutual Bank Standard Fixed – Owner Occupied 3 yrs -0.30% 3.79% 4.43%*
Victoria Teachers Mutual Bank First Home Buyers Package Standard Fixed – Owner O -0.30% 3.69% 3.77%*
Victoria Teachers Mutual Bank Education Package Home Loan Standard Fixed – Owner -0.30% 3.69% 4.09%*
Yellow Brick Road Empower Fixed PI 3 yrs -0.30% 3.99% 3.93%*
Yellow Brick Road Empower Package Empower Fixed PI 3 yrs 100k+ -0.30% 3.99% 3.93%*
My Credit Union Special Offer Fixed Rate 3 yrs -0.25% 3.94% 4.43%*
My Credit Union Fixed Rate 3 yrs -0.25% 4.19% 4.49%*
Firstmac VIP Pack Fixed 3 yrs -0.23% 3.96% 3.99%*
loans.com.au Fixed – Owner Occupier 3 yrs -0.23% 3.76% 3.82%*
Beyond Bank Residential Fixed 3 yrs -0.20% 4.09% 4.87%*
Beyond Bank Total Home Loan Residential Fixed 3 yrs 50k+ -0.20% 3.89% 4.79%*
Beyond Bank Pinnacle +Plus Pkg Residential Fixed 3 yrs 200k+ -0.20% 3.94% 4.58%*
Heritage Bank Residential Fixed 3 yrs -0.20% 3.99% 4.87%*
Heritage Bank Home Advantage Residential Fixed 3 yrs 150k+ -0.20% 3.99% 4.26%*
Homeloans MoniPower Fixed 3 yrs -0.20% 4.24% 4.21%*
HSBC 3 Year Fixed 3 yrs -0.20% 3.79% 4.91%*
HSBC Premier 3 Year Fixed 3 yrs 50k+ -0.20% 3.69% 5.04%*
Mortgage HOUSE Advantage Fixed 3 yrs 100-749k -0.20% 3.99% 4.53%*
Mortgage HOUSE Advantage Conservative Com Fxd 3 yrs -0.20% 3.99% 4.51%*
Mortgage HOUSE Advantage Fixed 3 yrs 750k+ -0.20% 3.99% 4.53%*
Southern Cross Credit Union Fixed Platinum Home Loan 3 yrs -0.20% 3.99% 4.36%*
Southern Cross Credit Union Fixed Platinum Professional Loan 3 yrs -0.20% 3.89% 4.19%*
Adelaide Bank Smartdoc Fixed 3 yrs -0.15% 4.99% 5.39%*
Adelaide Bank SmartFix 3 yrs -0.15% 3.99% 4.57%*
Hume Bank Residential Fixed (Refinance) 3 yrs -0.15% 4.10% 4.84%*
Hume Bank Residential Fixed 3 yrs -0.15% 4.10% 4.89%*
Hume Bank Property Package Residential Fixed 3 yrs 150k+ -0.15% 4.00% 4.66%*
RAMS Fixed Rate 3 yrs -0.15% 3.99% 4.98%*
Suncorp Bank Owner Occupied Fixed 3 yrs -0.15% 3.99% 5.18%*
IMB Residential Fixed 3 yrs 90% -0.14% 3.85% 4.39%*
IMB Platinum Package Residential Fixed 3 yrs 90% 150k+ -0.14% 3.75% 4.87%*
QT Mutual Bank Residential Fixed 3 yrs -0.14% 4.09% 4.74%*
QT Mutual Bank Choices Residential Fixed 3 yrs 20k+ -0.14% 3.99% 4.75%*
QT Mutual Bank Teachers’ Life Residential Fixed 3 yrs 20k+ -0.14% 3.99% 4.67%*
Commonwealth Bank Economiser Intro Variable 3 yrs -0.13% 3.91% 4.63%*
Commonwealth Bank Rate Saver Intro Variable 3 yrs -0.13% 3.91% 4.63%*
Aussie Select Basic Fixed 3 yrs -0.10% 3.89% 3.95%*
Aussie Select Standard Fixed 3 yrs -0.10% 3.89% 4.12%*
Australian Military Bank Fixed Rate 3 yrs 80% -0.10% 3.89% 4.87%*
BOQ Residential 3yr Fixed 3 yrs -0.10% 3.59% 4.39%*
Freedom Lend Freedom Fixed IO 3 yrs -0.10% 3.59% 3.85%*
G&C Mutual Bank Residential 3yr Fixed 3 yrs -0.10% 3.99% 4.03%*
Macquarie Credit Union First Home Buyers 3 yrs -0.10% 4.39% 4.79%*
Mortgage HOUSE Easy Start 3 Discounted Variable 3 yrs -0.10% 3.54% 4.40%*
Newcastle Permanent Discounted Real Deal 3 yrs -0.10% 4.30% 4.49%*
Police Bank Premium Fixed 3 yrs -0.10% 3.89% 4.59%*
Teachers Mutual Bank Option Fixed    3 yrs -0.05% 3.69% 4.78%*
UniBank Option Fixed    3 yrs -0.05% 3.69% 4.78%*
Freedom Lend Freedom Fixed PI 3 yrs 0.10% 3.79% 3.90%*


Source: CANSTAR. Correct as at 29/08/2016. Only residential 3 Year Fixed
loans available for a loan amount of $150,000 available for Principal and Interest Repayments included. Sorted by size of August rate cut. The table does not include all providers and may not compare all features relevant to you. 

*Comparison rate based on loan amount of $150,000. Read the Comparison Rate Warning

Compare 3 Year Fixed Home Loans

Lowest 3 Year-Fixed Advertised Rates on Database (as at 6th September 2016)

Following this month’s cuts, the lowest 3-year fixed rates for residential principal and interest home loans on our database are:

3 Year Fixed Home Loans under 3.67%
Rank Company Product Min Advertised Rate Comparison Rate*
1 BOQ Residential 3yr Fixed 3 yrs 3.59% 4.28%
2 FreedomLend Freedom Fixed 3.59% 3.85%
3 Pacific Mortgage Group Residential Fixed 3.65% 3.61%
4 AMO Residential Fixed 3.67% 3.81%
5 Mortgage House 50/50 Home Loan 3.67% 4.26%
Source: www.canstar.com.au. Correct as at 5/9/2016
Based on Residential 3 Year Fixed loans available for a loan amount of $300,000 available for Principal and Interest Repayments. Sorted by Minimum rate then Comparison rate. The table does not include all providers and may not compare all features relevant to you. Note that eligibility conditions will apply.
*Comparison rate based on loan amount of $150,000. Read the Comparison Rate Warning

Compare 3 Year Fixed Home Loans

August Rate Changes – 5 Year Fixed Rate Home Loans

(Residential 5 Year Fixed loans available for a loan amount of $150,000 available for Principal and Interest Repayments)

Company ProductName August Rate Change New Rate Comparison Rate*
Bank of Melbourne Residential Fixed 5 yrs -0.60% 4.14% 4.94%*
Bank of Melbourne Advantage Package Residential Fixed 5 yrs 150k+ -0.60% 3.99% 4.68%*
BankSA Residential Fixed 5 yrs -0.60% 4.14% 4.98%*
BankSA Advantage Package Residential Fixed 5 yrs 150k+ -0.60% 3.99% 4.72%*
St.George Bank Residential Fixed 5 yrs -0.60% 4.14% 4.98%*
St.George Bank Advantage Package Residential Fixed 5 yrs 150k+ -0.60% 3.99% 4.98%*
Westpac Fixed Options 5 yrs -0.60% 4.19% 4.97%*
Westpac Premier Advantage Fixed Options 5 yrs 150k+ -0.60% 3.99% 4.72%*
Newcastle Permanent Residential Fixed 5 yrs -0.55% 3.94% 4.54%*
Newcastle Permanent Premium Plus Package Residential Fixed 5 yrs -0.55% 3.94% 4.89%*
QT Mutual Bank Residential Fixed 5 yrs -0.46% 4.09% 4.62%*
QT Mutual Bank Choices Residential Fixed 5 yrs 20k+ -0.46% 3.99% 4.68%*
QT Mutual Bank Teachers’ Life Residential Fixed 5 yrs 20k+ -0.46% 3.99% 4.59%*
Aussie Select Basic Fixed 5 yrs -0.40% 4.19% 4.06%*
Aussie Select Standard Fixed 5 yrs -0.40% 4.19% 4.24%*
Freedom Lend Freedom Fixed PI 5 yrs -0.35% 4.04% 3.74%*
Aussie Optimizer Fixed PI 80 5 yrs -0.30% 4.19% 3.99%*
Aussie Optimizer Plus Fixed PI 80 5 yrs -0.30% 4.19% 4.05%*
Aussie Optimizer Fixed PI 5 yrs -0.30% 4.19% 3.99%*
Aussie Optimizer Plus Fixed PI 5 yrs -0.30% 4.19% 4.19%*
Homeloans Optima Fixed – Owner Occupied PI 5 yrs -0.30% 4.18% 4.22%*
Macquarie Bank Basic Fixed Owner Occupied PI 5 yrs -0.30% 4.19% 4.93%*
Macquarie Bank Offset Fixed Owner Occupied PI 5 yrs -0.30% 4.19% 5.30%*
RAMS Fixed Rate 5 yrs -0.30% 4.19% 4.91%*
Yellow Brick Road Empower Fixed PI 5 yrs -0.30% 4.19% 4.03%*
Yellow Brick Road Empower Package Empower Fixed PI 5 yrs 100k+ -0.30% 4.19% 4.03%*
Police Bank Premium Fixed 5 yrs -0.25% 4.58% 4.75%*
G&C Mutual Bank Residential 5yr Fixed 5 yrs -0.20% 4.29% 4.33%*
Victoria Teachers Mutual Bank Complete Fixed – Owner Occupied 5 yrs -0.20% 4.39% 4.14%*
Victoria Teachers Mutual Bank First Home Buyers Package Complete Fixed – Owner O -0.20% 4.39% 4.10%*
Victoria Teachers Mutual Bank Standard Fixed – Owner Occupied 5 yrs -0.20% 4.39% 4.55%*
Victoria Teachers Mutual Bank First Home Buyers Package Standard Fixed – Owner O -0.20% 4.29% 4.00%*
Victoria Teachers Mutual Bank Education Package Home Loan Standard Fixed – Owner -0.20% 4.29% 4.32%*
AMO Group Residential Fixed 5 yrs -0.10% 4.39% 4.11%*
Beyond Bank Residential Fixed 5 yrs -0.10% 4.59% 4.93%*
Beyond Bank Total Home Loan Residential Fixed 5 yrs 50k+ -0.10% 4.39% 4.89%*
Beyond Bank Pinnacle +Plus Pkg Residential Fixed 5 yrs 200k+ -0.10% 4.44% 4.66%*
Homeloans MoniPower Fixed 5 yrs -0.10% 4.83% 4.47%*
Hume Bank Residential Fixed (Refinance) 5 yrs -0.10% 4.50% 4.85%*
Hume Bank Residential Fixed 5 yrs -0.10% 4.50% 4.90%*
Hume Bank Property Package Residential Fixed 5 yrs 150k+ -0.10% 4.40% 4.76%*
Mortgage HOUSE Advantage Fixed 5 yrs 100-749k -0.10% 4.49% 4.66%*
Mortgage HOUSE Advantage Conservative Com Fxd 5 yrs -0.10% 4.49% 4.64%*
Mortgage HOUSE Advantage Fixed 5 yrs 750k+ -0.10% 4.49% 4.66%*
Teachers Mutual Bank Option Fixed    5 yrs -0.05% 3.94% 4.68%*
UniBank Option Fixed    5 yrs -0.05% 3.94% 4.68%*


Source: Source: CANSTAR. Correct as at 29/08/2016. Only residential 5 Year Fixed loans available for a loan amount of $150,000 available for Principal and Interest Repayments included. Sorted by size of August rate cut. The table does not include all providers and may not compare all features relevant to you. 

*Comparison rate based on loan amount of $150,000. Read the Comparison Rate Warning

Compare 5 Year Fixed Home Loans

Lowest 5 Year-Fixed Advertised Rates on Database (as at 5th September 2016)

Following this month’s cuts, the lowest 5-year fixed rates for residential principal and interest home loans on our database are:

5 Year Fixed Home Loans under 3.99%
Rank Company Product Min Advertised Rate Comparison Rate*
1 Newcastle Permanent Residential Fixed 5 yrs 3.94% 4.54%*
2 Teachers Mutual Bank Option Fixed    5 yrs 3.94% 4.68%*
3 UniBank Option Fixed    5 yrs 3.94% 4.68%*
4 Newcastle Permanent Premium Plus Package Residential Fixed 5 yrs 3.94% 4.89%*
5 QT Mutual Bank Teachers’ Life Residential Fixed 5 yrs 20k+ 3.99% 4.59%*
6 QT Mutual Bank Choices Residential Fixed 5 yrs 20k+ 3.99% 4.68%*
7 Bank of Melbourne Advantage Package Residential Fixed 5 yrs 150k+ 3.99% 4.68%*
8 BankSA Advantage Package Residential Fixed 5 yrs 150k+ 3.99% 4.72%*
9 Westpac Premier Advantage Fixed Options 5 yrs 150k+ 3.99% 4.72%*
10 St.George Bank Advantage Package Residential Fixed 5 yrs 150k+ 3.99% 4.98%*
Source: www.canstar.com.au. Correct as at 5/9/2016
Based on Residential 5 Year Fixed loans available for a loan amount of $300,000 available for Principal and Interest Repayments. Sorted by Minimum rate then Comparison rate. The table does not include all providers and may not compare all features relevant to you.
*Comparison rate based on loan amount of $150,000. Read the Comparison Rate Warning

Compare 5 Year Fixed Home Loans

CANSTAR is an information provider and in giving you product information CANSTAR is not making any suggestion or recommendation about a particular credit product. If you decided to apply for a home loan, you will deal directly with a financial institution, and not with CANSTAR. Rates and product information should be confirmed with the relevant financial institution. For more information, read our detailed disclosure, important notes and additional information. *Read the Comparison Rate Warning.

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