Home Loans

Compare fixed home loan interest rates 2021

Looking to take out a home loan soon? Savings.com.au has collated some of the lowest-rate fixed home loans on the market for you to consider.

Whether you’re looking to buy your first home, buy another one for your family, or refinance your current home loan to a better value one, Savings.com.au has compiled some of the lowest fixed home loan interest rates available on the market this month for both owner-occupiers and investors. We’ll be comparing some of the lowest fixed home loan rates available for:

Owner-occupied Fixed Rates Home Loans

1, 2 and 3 year fixed rate home loans (P&I)

Here is a snapshot of some of the lowest fixed home loan rates from a variety of lenders for 1, 2 and 3 year fixed rate home loans.

5 year fixed rate home loans (P&I)

Looking for a 5 year fixed rate home loan? Here is a snapshot of some of the lowest fixed home loan rates from a variety of lenders.

Owner-occupiers fixed rate interest only

Investment Fixed Rate Home Loans

Investor - 1, 2 and 3 year fixed rate home loans (P&I)

Here is a snapshot of some of the lowest investor fixed home loan rates from a variety of lenders for 1, 2 and 3 year fixed rate home loans.

Investor - 5 year fixed rate home loans (P&I)

Looking for a 5 year fixed rate home loan for your investment? Here is a snapshot of some of the lowest fixed home loan rates from a variety of lenders.

Investor - fixed rate interest only

Fixed Rate Home Loans FAQs

Why a home loan fixed interest rate?

A fixed interest rate, as the name might suggest, fixes the interest rate you pay in place for the duration of the term specified. For example, a three-year fixed interest rate at 2.50% p.a. will stay at that 2.50% p.a. rate for three years regardless of economic pressures or the lender’s needs, before reverting to a standard variable rate. 

Cash flow certainty is arguably the biggest advantage of a fixed-rate loan. Your repayments staying the same for a known period of time can make it much easier to budget, as you know exactly how much your repayments will be. This often makes fixed-rate home loans popular for investors and first-time buyers over the first two-three years that they own a property for.

Of course, this can also be a disadvantage if interest rates drop. The locked nature of a fixed rate home loan means any reductions in a lender’s interest rates for any reason (such as recent changes to the cash rate) won’t be passed on to you, which can cause you to lose out on hundreds if not thousands of dollars. Also the variable rate the loan will revert to at the end of the fixed-rate period (known as the revert rate) can be significantly higher than some of the lower variable rates on offer, so you may want to consider refinancing to a different loan around this time. 

Fixed vs variable home loan rates

A variable rate home loan, on the other hand, is a home loan where your interest rate will move along with changes to the market. So if you have a home loan with a variable rate of 2.50% p.a. interest rate, and your lender decides to drop rates by 25 basis points, your home loan rate should now be 2.25% p.a.

Although variable rate home loans have a higher degree of uncertainty than fixed loans, they can be cheaper for you, particularly in times where rates are regularly falling. They also tend to have appealing features like the ability to make extra repayments, offset accounts and redraw facilities, which most fixed loans don’t allow. 

See our article on fixed vs variable rates to learn more about which one you should choose, and see what interest rates are currently to give you an idea of whether they might rise or fall. 

How much of a difference does a good home loan interest rate make?

A low interest rate can make a HUGE difference to your overall costs, so it can be crucial to get a good one. 

Let’s compare two 30-year home loans, at 2.50% p.a. and 3.50% p.a. These rates are higher than many of the rates seen in this article, but the unfortunate truth is there are still many people stuck on these higher rates at the moment without knowing there are better options out there. 

This extra 1% point on a home loan can vastly inflate a person’s repayments. The table below shows the difference in monthly repayments for various loan amounts, on loans with no introductory rates or fees. 

Loan amount 2.50% 3.50% Monthly savings at 2.50% Total savings at 3.50%
$300,000 $1,185.36 $1,347.13 $161.77 $58,238.52
$400,000 $1,580.48 $1,796.18 $215.7 $77,649.22
$500,000 $1,975.60 $2,245.22 $269.62 $97,062.85
$700,000 $2,765.85 $3,143.31 $377.46 $135,889.13

Calculations made via Savings.com.au's Home Loan Comparison Calculator.

Even a small change in interest rates can add extra tens of thousands if not hundreds of thousands to the overall cost of your home loan.

The different types of home loan providers we compare

Big four home loan interest rates

The big four banks – ANZCommonwealth BankNAB and Westpac – dominate the home loan market, holding around 80% of all residential mortgages. This makes Australia’s home loan market one of the most concentrated in the world when it comes to the major banks. What’s more, they have nearly $1.4 trillion in housing loans at the moment, with just under $900 billion of this dedicated to owner-occupied housing.

Customer-owned home loan interest rates

Customer-owned banks, also called mutual banks, are banks not beholden to shareholder profits. The mutual sector held combined assets of $138 billion in 2020, according to KPMG. This is about 2.6% of total assets across all deposit-taking institutions, although this number has been growing sharply in recent years.

Representatives of customer-owned banks argue that this allows them to pass on profits to customers in the form of lower rates and fees, and there’s some merit to that argument based on some of the rates seen above.

Compare low interest rates from customer-owned banks here

Non-bank home loan interest rates

Banks and mutual banks are ‘authorised deposit-taking institutions’ and are able to offer deposit accounts like savings accounts and term depositsNon-banks are not able to do this but are still able to offer home loans, many of which still have competitive rates.

You may see some non-banks and their related entities in the tables above, such as Resimac, State Custodians and loans.com.au.

Compare some of the lowest home loan rates from non-bank lenders here

So is now a good time to fix your rate? 

This is a difficult question to answer, as choosing between a fixed or variable interest rate depends on your own situation as well as the broader economic environment. For example, it might be a bad idea to fix your interest rate if: 

  • Interest rates are falling 
  • You don’t want to be stuck with a particular lender (switching from a fixed-rate incurs high exit fees) 
  • You like flexibility in a loan (many don’t allow extra repayments or extra features)
  • You plan on quickly flipping the home within the fixed-rate period 

Mortgage Choice CEO Susan Mitchell told Savings.com.au that fewer borrowers now are fixing their interest rates due to recent Reserve Bank rate cuts in 2019, saying “our home loan approval data shows that demand for fixed-rate home loans has dropped since the RBA’s back to back cash rate cuts in June and July". 

But as of 2021, fixed-rate lending has seen an increase in popularity, with the majority of interest rate cuts from banks and lenders being for fixed loans. This is particularly true among the loans below the 2% per annum benchmark.  

If you want secure repayments and a basic, no-frills interest rate that’s also quite low for a short period of time, then a fixed loan could be the right option for you. 

“Fixed-rate home loans are a good idea if you want certainty for your home loan repayments because you might be dealing with budget constraints or foresee a change to your cash flow and you want more control over your finances,” Ms Mitchell said.

“I think we often fall into the trap of chasing the lowest interest rate and while it’s an important part of the decision when choosing a home loan, lender policy, loan structure and features should not be overlooked.

“For example, a borrower may benefit from a redraw facility or an offset account, features which come at a cost but could be beneficial to the borrower over time. It’s worth noting as well that not all borrowers will qualify for the lowest rate on the market.”

See more information in our ‘should you fix your interest rate‘ article. You can also consider a split home loan if you want to get the best of both types of interest rates.

Frequently asked questions

1. Should I fix my mortgage?

It depends on your circumstances. Fixed interest rates are often higher than many variable rates, but if you value the security and stability of having fixed repayments for a few years, they may be worth considering. Before locking in your home loan rate for several years, consider whether interest rates are expected to rise or fall in future.

One general rule of thumb you could follow is to only consider a fixed loan when the gap between average variable and fixed rates is less than 1% point. Exiting a loan before the end of the fixed period will result in a break fee, which may cost thousands, so if you're thinking about selling your home or want the freedom to switch home loans, a fixed rate mortgage may not be suitable for you.

2. Can you pay off a fixed rate home loan early?

If you repay your fixed rate home loan before the end of the fixed term, you will have to pay a break fee which may cost thousands. Other admin fees may also apply. If you want the freedom to repay your home loan early, a fixed rate home loan may not be the best option for you.

Savings.com.au’s two cents

Although they’re becoming less popular in a low-rate environment, fixed-rate home loans still represent a viable option for many home buyers. Just make sure you consider your financial situation before committing to a fixed-rate loan, as you don’t want to make the wrong choice.

If you are looking for a good low-rate fixed loan, then these home loans could be a good place to start. You can also keep up with the latest home loan rate movements by checking our home loan news page.


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.

Loading data please wait...



Current Rate

{{returnData.currentRate | percentage:2}}

Comparison Rate*

{{returnData.comparisonRate | percentage:2}}

Rate Type


Advertised Rate


Comparison Rate*


Monthly Repayment


Interest Type


Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Bonus Interest Rate

{{returnData.bonusInterestRate | percentage:2}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Introductory Rate

{{returnData.introductoryRate | percentage:2}}

Introductory Term


Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}



Advertised Interest Rate

{{returnData.advertisedInterestRate | percentage:2}}

Interest Frequency


Fees and Features

Ongoing Annualised Fee


Upfront Fee


Offset Account


Principal & Interest

Interest Only


Max loan to value ratio (LVR)

{{returnData.maxLVR | percentage:0}}

Lump sum repayments


Additional repayments

Maximum Loan Term


Upfront Fee


Ongoing Monthly Fee


Early Repayment Fee Applies


Vehicle Types


Maximum Vehicle Age


Pre Approval Available


Online Application


Account Keeping Fee


Minimum Monthly Deposit


Linked Account Required


Interest Calculated


Interest Paid


Online Application






Account Keeping Fee


Minimum Monthly Deposit


Linked Account Required


Interest Calculated


Interest Paid


Online Application






Minimum Deposit

{{returnData.minDeposit | currency : '$' : 0}}

Upfront Fees

{{returnData.upfrontFee | currency : '$' : 0}}

Annual Fees

{{returnData.annualFee | currency : '$' : 0}}

Notice Period to Withdraw


Online Application


Automatic Rollover


Maturity Alert