Sunrise Finance

Menu

Compare Our Fixed-Rate Home Loans

Find out your options for fixed-rate loans in the Australian property market

GET A FREE ASSESSMENT

4.8 (1,650+ Reviews)

Updated: 28 Nov, 2024
4 mins read

Get A Competitive Deal

The table below lists the most competitive fixed rates available in the Australian market.

Fixed Loan Term

Interest Rate

Comparison Rate*

Contact Us

1 year fixed

5.79%

7.91%

Apply Now

2 years fixed

5.49%

7.65%

Apply Now

3 years fixed

5.39%

6.26%

Apply Now

4 years fixed

5.49%

6.24%

Apply Now

5 years fixed

5.49%

6.24%

Apply Now

10 years fixed

7.24%

7.84%

Apply Now

Interest in advance

6.14%

6.74%

Apply Now

What Is A Fixed-Rate Home Loan?

A fixed-rate home loan is a mortgage with an interest rate that remains unchanged for a set period, usually between 1 and 5 years, though some lenders may offer terms of up to 10 years.

During this time, your repayments remain consistent regardless of changes in market interest rates. Once the fixed period ends, you can choose to refix your loan at the prevailing rates or switch to a standard variable rate.

Fixed-rate loans require careful consideration, as committing to a fixed term with a lender can result in break costs if you need to exit early. Let’s explore everything you need to know about fixed-rate home loans, including their advantages, potential downsides, and how to determine if this option is the right fit for you.

Should I Choose A Fixed-rate home loan?

Opting for a fixed-rate home loan can be a great choice if you prioritize stability and predictability in your repayments.

Here are some factors to consider:

Stability: A fixed-rate loan provides the certainty of knowing exactly what your repayments will be for a set period.
Market Conditions: Some people choose a fixed rate if they expect interest rates to rise, as it allows them to lock in a current rate and potentially save in the long run.
Inflexibility: Fixed-rate loans can have less flexibility, often including penalties for early repayment or switching loans.

Ultimately, the choice depends on your financial situation and your comfort with potential changes in interest rates.

Pros And Cons Of Fixed-rate Home Loans

Pros of getting a fixed-rate home loan

Stability in Repayments

You are protected from interest-rate hikes during the fixed term. Your repayments will not change.

Financial Planning

Fixed repayments make it easier to budget and help with long-term financial planning. It’s easier to manage other financial commitments without worrying about changing loan repayments.

Certainty in Uncertain Times

Fluctuations can occur in the economy, a fixed-rate loan offers predictability.

Cons of getting a fixed-rate home loan

Limited Flexibility

Fixed-rate loans often come with restrictions, such as penalties for early repayment or switching loans. You might also miss out on potential savings if interest rates fall during the fixed period.

Higher Initial Rates

Fixed-rate loans can initially be higher than variable-rate loans, meaning you might pay more if interest rates stay the same or decrease.

Fewer Home Loan Features

Fixed-rate loans often come with fewer features, such as redraw facilities or offset accounts, limiting your options for managing the loan.

Re-evaluation at the End of the Term

When the fixed period ends, your loan typically changes to your revert rate – a variable rate determined by the lender – which might be higher. You will need to reassess your financial situation and possibly renegotiate your loan terms. Contact your mortgage broker immediately so they can reprice the rates and ensure you remain competitive.

Looking for Alternatives

If a fixed-rate home loan doesn’t seem like the right fit for you, there are other options to consider.

Variable-Rate Loans: These loans have interest rates that fluctuate with the market, which can lead to lower repayments when rates are down but higher repayments when rates rise. Variable-rate loans often offer more flexibility, too, including features like redraw facilities and offset accounts.
Split Loans: A split loan combines fixed and variable rates. For example, you could take out a $500,000 loan and split it into two portions: $300,000 with a fixed rate of 5.99% for three years and $200,000 with a variable rate of 6.20%. This way, you have the stability of fixed repayments on the larger portion, while the variable rate on the smaller portion allows you to benefit if interest rates decrease.

What Are the Fees and Charges?

While the specific fees and charges can vary among lenders, here are some common ones you might encounter when getting a fixed-rate home loan:

Upfront Fees

Application fee: A one-off charge for processing your loan application.
Valuation fee: Covers the cost of assessing the property’s value.
Establishment fee: Covers the lender’s costs in setting up the loan.
Rate lock fee: If you want to secure a specific interest rate during the loan application process, you need to pay this fee.

Ongoing Fees

Monthly account fee: A regular charge for maintaining the loan account.
Early repayment fee: If you pay off the loan early, you might incur this charge.

Closing Fees

Break fee: If you want to exit the fixed-rate period early, you will have to pay this fee.
Discharge fee: A fee for closing the loan account when the loan is fully repaid.

Visit on Fees and Charges for a detailed breakdown of these, the costs, and other potential charges.

Is a Fixed-Rate Home Loan the Right Choice for You?

A fixed-rate home loan is ideal if you want consistent repayments and protection from rate changes. However, it offers less flexibility and may incur break costs if you exit early.

Get a Free Assessment

Why Choose Mortgage Brokers from Sunrise Finance WA?

Choosing the right mortgage broker can make all the difference. Here’s why Sunrise Finance WA is your best choice:

Specialised expertise: We excel in helping clients with complex financial situations and those turned down by banks.
Competitive rates: We negotiate sharp interest rates to secure the best deal for you.
Personalised service: Our brokers provide tailored guidance and guide you through every step.
Wide range of options: Access to numerous loan products from major lenders.
Ongoing support: We offer continuous assistance throughout the life of your loan.
Local and international clients: We help clients in Australia and overseas buy property in Australia.
Best of all, our services are free for you!

Home Loan Calculators And Guides

LVR Calculator
How Much Can I Borrow
Mortgage Repayment Calculator
LMI
Guarantor

FAQs

For How Long Can I Fix A Home Loan Rate?

In Australia, you can typically fix a home loan rate for a period ranging from 1 to 5 years, though some lenders offer fixed terms of up to 10 years.

Yes, many home loans offer a redraw facility, allowing you to access extra repayments you've made. However, this feature is more common with variable-rate loans than with fixed-rate loans.

Yes, you can switch from a fixed rate to a variable rate, but be aware that there may be break fees or penalties for ending the fixed term early.

Fixed-rate home loan rates are influenced by several factors, including the lender's cost of funds, economic conditions, the term of the fixed rate, and overall market interest rates.

After the fixed home loan term expires, the loan typically goes to a variable revert rate unless you refix the home loan or refinance

A comparison rate includes the interest rate plus most fees and charges relating to a loan, expressed as a single percentage. It helps you understand the true cost of a loan and how it can affect your financial situation.

For example, if your loan has an advertised interest rate of 6.13% but the comparison rate is 6.73%, the comparison rate includes extra costs like setup fees and ongoing charges. This way, you can see the loan's overall expense more clearly.

Rate lock is a feature that allows you to secure a fixed interest rate while your home loan application is being processed, protecting you from rate increases before settlement. A rate lock can cost you between $395 and $695 or 0.15% of the loan amount.

Comparing home loans can help you find the best interest rates, fees, and features for your financial situation, potentially saving you thousands of dollars over the life of the loan.

The main types of home loans in Australia include fixed-rate loans, variable-rate loans, split loans, interest-only loans, and line-of-credit loans.

There are also specialised loans like:

Doctor Home Loans: No LMI for high-income doctors
Expat Home Loans: For Australians living abroad
Guarantor Loans: Using a guarantor’s property as security
Bad-Credit Loans: For those with poor credit
Unusual Employment Loans: For buyers with non-traditional jobs
Refinance Loans: For when you switch to a new loan for better rates or terms, to access the equity in your home, or to consolidate debt.
Investment Loans: For property investment.

Still need answers? We're here to help!

Ask an Expert

Our team of mortgage experts will assist you within 24 hours.

Related Topics

Consistent Repayments

Enjoy predictable monthly repayments for the fixed period, making it easier to budget and plan your finances.

Protection from Rate Hikes

Shield yourself from interest rate increases during the fixed term, providing peace of mind in a fluctuating market.

Fixed Terms to Suit You

Choose from flexible fixed terms, typically ranging from 1 to 5 years, with some lenders offering up to 10 years.

Limited Flexibility

Be aware that fixed-rate loans may have restrictions on additional repayments or early loan termination, which can incur break costs.

Great for Budgeting

Ideal for borrowers who value financial stability, as your repayment amounts remain unchanged, regardless of market conditions.

Option to Refix or Switch

Once the fixed term ends, you can either refix at the current rates or switch to a variable-rate loan, depending on your preferences.

Trust Sunrise Finance WA To Help You

We have thousands of five-star reviews and testimonials on Product Review, Google Review and Facebook.

4.8 out of 1,650+ reviews
4.8 out of 430+ reviews
4.8 out of 720+ reviews

What Our Customers Say About Us

Get in touch with
a specialist mortgage broker today.
With our award-winning mortgage brokers, tough home loan approvals become a breeze.
0862430351
GET A FREE ASSESSMENT