Which lenders offer 5 year fixed rate home loans?

author-avatar By on September 13, 2021
Which lenders offer 5 year fixed rate home loans?

Fixed-rate home loans can provide repayment certainty amid an ever-changing market, but could you commit to a five-year fix?

Five years. Half a decade. That's about the longest amount of time most mainstream lenders will allow you to fix your home loan for. There are a few lenders offering seven or 10-year fixed-rate home loans, but the higher interest rates hardly seem worth it.

Luckily, five-year fixed-rate home loans seem to dodge much of that, offering competitive market rates in lieu of repayment certainty. Many providers also offer them, meaning there's plenty to choose from.

Buying a home or looking to refinance? The table below features five-year fixed home loans with some of the lowest interest rates on the market for owner occupiers.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
FixedMore details

Reward Me Home Loan Fixed 5 Years ($300k+) (Principal & Interest) (New Customer)

FixedMore details

Live-in Fixed Loan (Principal and Interest) 5 Years

FixedMore details

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 5 Years

FixedMore details

Yard Home Loan Fixed 5 year (Principal and Interest) (LVR < 70%)

FixedMore details

myBlue Home Loan (Fixed Rate) (Principal and Interest) (LVR < 60%) 5 year

FixedMore details

UHomeLoan Fixed OO (Principal and Interest) 5 Years (LVR < 80%)

FixedMore details

Basic Home Loan Fixed 5 Year (LVR < 60%)

FixedMore details

Basic Flyer Home Loan Fixed (Principal and Interest) (LVR < 70%) 5 Years

FixedMore details

Great Rate Fixed Home Loan (NSW, ACT & QLD only) 5 Years

FixedMore details

Fixed Rate Home Loan (QLD only) (Principal and Interest) 5 Years

FixedMore details

Yard Home Loan Fixed 5 year (Principal and Interest) (LVR < 90%)

FixedMore details

Fixed Rate Home Loan (Principal and Interest) (NSW and ACT only) 5 Years (LVR < 95%)

FixedMore details

Reward Me Home Loan Fixed ($300k+) (Principal and Interest) 5 Years

FixedMore details

Home Package Plus Personal Fixed First Home Buyer Special (Principal and Interest) 5 Years (LVR ≤ 80%)

FixedMore details

Fixed Rate Home Loan 5 Years

FixedMore details

Your Way Plus Fixed Home Loan 5 year (Principal and Interest) (LVR < 60%)

FixedMore details

SmartSaver Fixed Investment Loan (Principal and Interest) 5 Years

FixedMore details

Standard Fixed Rate Home Loan (Principal and Interest) (New Customer) 5 Years ($150k+, LVR < 80%)

FixedMore details

Complete Package Fixed Home Loan 5 year (New Customer)

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of October 23, 2021. View disclaimer.

Pros and Cons of Five Year Fixed-Rate Home Loans

There are a few considerations to make before jumping into a five-year fixed-rate home loan, including these benefits and drawbacks.

Pros

  • Repayment certainty: As the name implies, fixed-rate loans fix the interest rate, which in turn fixes your repayment. This can help if you’re looking for cashflow certainty.

  • Weather any rate rises: Even a few basis points' difference to your home loan interest rate can add hundreds to your repayment, which can blow out the budget.

  • Lock-in at bottom of rate cycle: Rates are at or near historic lows, so the only way is up, right? If you lock in at the bottom, you won’t have to worry about any potential increases to your home loan on the horizon.

Cons

  • Higher interest rates: Most of the competition in the fixed lending space has been in the 2-3 year range. While 5 year rates are still competitive, they are often around half a percentage point (50 basis points) dearer on the advertised rate than their 2-3 year fixed siblings.

  • Less flexibility: A fixed mortgage typically has more restrictions, including the ability to pay extra into the home loan. Banks and lenders typically cap extra repayments on fixed loans at $10,000 per year.

  • Break costs: One broker Savings.com.au spoke to once saw a client pay $35,000 in break fees to leave their fixed home loan. This is a fee calculated based on the lender’s wholesale funding costs. The longer you have to go on your fixed period - and the more you’ve borrowed - the greater your break fee is likely to be.

The market is awash with competitive five-year fixed loans, just make sure you do your research before deciding if fixing is right for you, your budget, and your home loan goals.


Photo by Advocator SY on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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