Fix your home loan with a low rate advantage

Charmaine Wong, Yahoo7 Moneyhound Updated October 31, 2012, 9:00 am

A Reserve Bank rate cut from the current cash rate of 3.25 per cent this Melbourne Cup Day could see the official cash rate approach record lows.

With the current official interest rate at its lowest in three years, in fact it's at its lowest since the GFC, this means there's an opportunity to reassess your home loan.

If there's other providers that can offer you a lower variable rate then you could switch. But you could go a step further and lock in these low rates before it's too late with a fixed rate home loan. A fixed rate loan could benefit you greatly in the future and save you thousands in interest if or when rates start to rise again.

Related: Fixed verses variable home loans, compare the pair

Would I benefit from a rate cut?

A possible interest rate change on the cards doesn’t ensure any benefits will be passed on in full to a variable rate mortgage holder. As a result, doing a quick variable home loan rate comparison could help you find the best rate around for your mortgage needs.

Should I fix it?

More than 11.2 per cent of mortgage owners enjoy the stability of a fixed rate loan, according to the Australian Bureau of Statistics.

Knowing the exact amount due each month for your home loan repayments can be a big drawcard for some consumers, making it easier to manage the household budget and giving them security and safety in the knowledge that if interest rates start to rise again they will not suffer increased mortgage repayments.

Related: 5 Ways to take advantage of an RBA interest rate cut

Moneyhound compares some of the current low rates from 3-year fixed rate home loans:

  • 5.13% p.a. UBank UHomeLoan for Refinancing Fixed Rate Loan
  • 5.29% p.a. HSBC Premier Fixed Rate Loan
  • 5.30% p.a. CUA Fixed Rate Home Loan
  • 5.38% p.a. Newcastle Permanent Building Society Fixed Rate Home Loan
  • 5.39% p.a. ME Bank Super Members Home Loan Standard Fixed Rate Home Loan
*correct as at date of publication 31 October 2012

Could you get a better home loan deal? Find out at Moneyhound.

Moneyhound Product Picks this Month:


Low Interest Credit Cards 


Get the latest deals that could save you money on your monthly bills

Help me find a home loan

  • Available to

    Repayment type

  • Rate type

  • Include loan type

  • Required features

  • Repayment frequency

  • State/Territory

Help me Save

Use our home loan interest calculator

      • Interest rate (APR*) used : 5.2%

      *APR and APR term suggestions are based on market competitive products listed on this page. Fees and charges are payable. Read the disclaimer

      Moneyhound helps you compare 2418 home loans from 109 trusted issuers

      Home Loans Latest News

      Compare more products and services

      Disclaimer: Yahoo7 has partnered with RateCity and WhistleOut for the provision of pricing information for financial, telecoms products. Yahoo7 has partnered with Lifebroker to provide information regarding life risk products and with RateCity to provide information on general insurance products. Yahoo7 has no direct affiliation with any finance, telecom or energy institutions listed here to promote this content. The content of this website has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should not acquire any financial products before taking into account whether your selected products are appropriate to your personal circumstances, having regard to your own objectives, financial situation and needs. Whilst reasonable efforts are maintained to provide accurate, true and correct information, it is advised that you confirm the terms of any product or contract and consult the product disclosure statement before making a decision to apply to any product issuer.

      Whilst Yahoo7 Moneyhound attempts to provide information regarding as many products in the market as is possible, not all available products are compared on this site.The comparison rates for home loans are based on secured credit of $150,000 and a term of 25 years. The comparison rates for car and personal loans are based on credit of $10,000 and a term of 3 years. WARNING: The comparison rate applies only to the example 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. Read more on our disclaimers here.

      Yahoo7 Money Hound Pty Ltd | ACN: 151 232 450 | ABN: 20 151 232 450
      AFSL: 407341 | ACL: 407723 | COSL: M0011954
      Financial Services Guide