Australia’s big four banks and a host of challenger lenders are offering three-year fixed-rate home loans for under 4 per cent.
The three-year home loans with the lowest interest rates are for owner-occupiers with a maximum loan-to-value ratio (LVR) of 80 per cent.
Both Westpac and Commonwealth Bank have three-year mortgages with advertised rates starting from 3.89 per cent (see table below).
NAB and ANZ have three-year interest rates as low as 3.99 per cent.
Three-year fixed-rate home loans – big four banks
| Lender | Advertised rate | Comparison rate |
|---|---|---|
| Westpac | 3.89% | 4.92% |
| Commonwealth Bank | 3.89% | 5.01% |
| NAB | 3.99% | 4.86% |
| ANZ | 3.99% | 5.02% |
Owner-occupiers with a maximum LVR of 80 per cent could potentially get even lower interest rates from a range of challenger lenders.
For example, both Easy Street Financial Services and Community First Credit Union are pricing their three-year fixed-rate home loans as low as 3.69 per cent (see table below).
UBank and IMB Bank have three-year mortgages from 3.74 per cent, QBank from 3.75 per cent, Auswide Bank from 3.76 per cent, and Reduce Home Loans, Freedom Lend, RACQ Bank and Suncorp Bank from 3.79 per cent.
Three-year fixed-rate home loans – challenger lenders
| Lender | Advertised rate | Comparison rate |
|---|---|---|
| Easy Street Financial Services | 3.69% | 4.13% |
| Community First Credit Union | 3.69% | 4.93% |
| UBank | 3.74% | 4.01% |
| IMB Bank | 3.74% | 4.49% |
| QBank | 3.75% | 4.36% |
| Auswide Bank | 3.76% | 4.59% |
| Reduce Home Loans | 3.79% | 4.08% |
| Freedom Lend | 3.79% | 4.48% |
| RACQ Bank | 3.79% | 4.75% |
| Suncorp Bank | 3.79% | 4.78% |
Please note that the cheapest three-year home loan won’t necessarily be the best home loan for your situation.
