Why locking in a fixed rate home loan now could be a smart money move
The RBA recently made its first cut in four years and many banks followed suit. But while a lower cash rate is good news for borrowers and homeowners, the RBA board was quick to point out there’s no certainty we’ll see another drop anytime soon. So if you’re looking to lock in a great home loan deal, now might be the time to consider a fixed rate as many challenger banks have highly competitive short-term deals available.
Some of the best 1 and 2 year fixed rates are now sitting well below the average big 4 variable rate, which is currently 6.77% p.a. according to our database^. Locking in a rate that’s 1% lower could mean savings of around $300 a month on a $500K loan over 25 years.
Macquarie’s 2-year fixed home loan for example offers a sharp 5.19% p.a. (5.78% comparison rate*) for borrowers with 30% equity, while IMB Bank has a 2-year fixed rate of 5.69% p.a. (6.00% comparison rate*) for borrowers with a deposit of as little as 5%.
No one can predict the future but fixing your home loan could provide certainty over repayments. Many lenders also offer split loan options and flexible features like offset accounts and extra repayments helping you save even more.
Of course, fixing isn’t without risks. If rates drop further, you could miss out on lower repayments, and breaking a fixed loan early can come with costly fees. The key is to choose a fixed term that balances current savings with the flexibility to adapt if your situation changes.
Latest fixed rate home loans deals on Mozo
IMB Bank 2 year Fixed Rate Home Loan
- 5.69% p.a. 2 year fixed rate (6.20% p.a. comparison rate*)
- Up to $4,000 cashback (T&Cs apply)
- Free internet and mobile banking redraws
Get the peace of mind of a competitive fixed rate home loan for 2 years with IMB and score up to $4,000 cashback in your pocket once approved (T&Cs apply). You have the freedom to make up to 12 months repayments in advance without penalties, plus you’ll have free Internet and Mobile Banking redraws (T&Cs apply). There’s only a 5% deposit required and you have the flexibility to split your home loan as required. No offset account.
BCU Fixed Rate Home Loan
- 5.49% p.a. for 2 years (5.91% p.a. comparison rate*)
- No establishment or annual ongoing fee
- Just 5% deposit required
- 2024 Mozo Experts Choice Award winner
Member-owned BCU won a 2024 Mozo Expert’s Choice^ for this fixed rate home loan and with no establishment fee, no ongoing annual fee, and competitive rates, it’s easy to see why. You can lock in up to 5 years (rates may vary) and there is an option to make weekly, fortnightly or monthly repayments. During the fixed period you can also make extra repayments of up to $25,000. The loan is also available with just a 5% deposit. Other fees may apply. No offset account.
P&N Bank Fixed Home Loan
- 2 year fixed rates from 5.49% (5.96% comparison rate*)
- No ongoing monthly loan maintenance fees.
- 20% deposit required
Enjoy the repayment certainty with a competitive fixed interest rate for 2 years and no ongoing monthly with the P&N Bank Fixed Rate Home Loan. You’ll have the freedom to choose to repay weekly, fortnightly, or monthly and make extra payments (up to $25,000) without penalty, to pay off your home loan even faster. Plus, you’ll have the option to split your home loan to a fixed portion of your loan and pay variable rates on the rest. Other fees may apply.
Macquarie Basic 2 year Fixed Home Loan
- Fixed rates from 5.19% (5.78% comparison rate*) - minimum 30% deposit
- Free redraw from your loan using Macquarie Online
- No application or account management fees
This competitive fixed home loan from Macquarie has all the bells and whistles you'd expect of Australia's fifth largest lender, including free extra repayments and online redraws for up to $10,000 per annum. There's also no application or account management fees to pay so you could save more in the long term.
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^According to the Mozo Database as at 12/03/2025 based on an owner occupied variable rate home loan of $400,000 over 25 years with a LVR <80%.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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