Cheapest Three-Year Fixed Home Loans

GOLD WINNERS BANK UBANK NON-BANK EASY STREET Rising interest rates here and in the US are prompting borrowers to lock in

Fixed-rate loans are making a comeback. According to Mortgage Choice, demand for fixed-rate mortgages has surged to reach almost 24% of all loans written – the highest level since December 2017.

The shift in borrower demand is undoubtedly linked to the independent rate hikes announced by several big banks in late August and early September. And with interest rates rising in the US, which is a key source of funding for Australian banks, now could be the time to lock in a home loan rate, especially as our winners show that it’s possible to fix for under 4%.

UBank’s wafer thin threeyear rate of 3.74% is good value, and the loan allows additional repayments up to $20,000 during the fixed term. A rate-lock fee of $395 applies to guard against any rate increases before settlement. You will need a 20% deposit to be eligible.

The discounted rate for Greater Bank’s Great Rate home loan is available for borrowings worth up to 90% of your property’s value.

IMB offers a three-year fixed loan that allows up to 12 months of repayments in advance without penalty, and free redraw is available.

Easy Street’s three-year super low fixed rate of 3.69% also offers plenty of flexibility. The loan includes a 100% offset account to save on interest, the option to make extra repayments (up to $25,000 a year without penalty) and even redraw with no minimum amount. Owner-occupiers can borrow up to 95% of the purchase price (with lenders mortgage insurance).

The Community First Credit Union (CFCU) threeyear fixed-rate loan bears a strong resemblance to the Easy Street product, and that’s no surprise because CFCU owns Easy Street. This loan also offers 100% offset, there are no annual or monthly fees, and borrowers have the freedom to make extra repayments (up to $25,000 a year without penalty), with the option to redraw your money as needed. The maximum borrowing is 95% of your home’s value.

Pacific Mortgage Group has been a regular in Money’s Best of the Best awards.

The rate is low at 3.78% but you’ll need a 20% deposit to be eligible.