Why do rates matter so much?
The rate on your home loan dictates how much interest you will pay on your borrowed amount over the life of the loan. Even a small change in rate can make a big difference over a 30-year loan term.
Live-in principal and interest
| Variable rate | Fixed rate | |
|---|---|---|
| Interest rate | 6.09% p.a. |
1 year 6.04% p.a. 2 year 5.74% p.a. 3 year 6.04% p.a. 4 year 6.04% p.a. 5 year 6.04% p.a. |
| Comparison rate1 | 6.22% p.a. |
1 year 6.21% p.a. 2 year 6.15% p.a. 3 year 6.21% p.a. 4 year 6.20% p.a. 5 year 6.20% p.a. |
| Loan term | Up to 30 years | Up to 30 years |
| Max loan to value ratio | 90% (or 10% deposit) |
90% (or 10% deposit) |
| Upfront fees | Zero establishment fee. External fees apply. | Zero establishment fee. External fees apply. |
|
Valuation fees (charged at cost, per property) |
Electronic valuation: $134.20 Full valuation - less than $1 million in value: $220 Full valuation - greater than $1 million in value: $440 |
Electronic valuation: $134.20 Full valuation - less than $1 million in value: $220 Full valuation - greater than $1 million in value: $440 |
| Monthly service fee | $10 | $10 |
|
Additional repayments (no charge) |
Yes | Yes, up to 20% during the fixed period |
| Free redraw | Yes | Yes |
| Offset account | Yes | Yes, partial only |
Live-in interest only
| Variable rate | Fixed rate | |
|---|---|---|
| Interest rate | 6.72% p.a. |
1 year 6.79% p.a. 2 year 6.49% p.a. 3 year 6.54% p.a. 4 year 6.54% p.a. 5 year 6.54% p.a.
|
| Comparison rate1 | 6.48% p.a. |
1 year 6.49% p.a. 2 year 6.44% p.a. 3 year 6.43% p.a. 4 year 6.41% p.a. 5 year 6.40% p.a. |
| Loan term | Up to 30 years (Maximum interest only period is 5 years - after which the loan will convert to principal and interest) |
Up to 30 years (Maximum interest only period is 5 years - after which the loan will convert to principal and interest) |
| Max loan to value ration | 90% (or 10% deposit) |
90% (or 10% deposit) |
| Upfront fees | Zero establishment fee. External fees apply. | Zero establishment fee. External fees apply. |
|
Valuation fees (charged at cost, per property) |
Electronic valuation: $134.20 Full valuation - less than $1 million in value: $220 Full valuation - greater than $1 million in value: $440 |
Electronic valuation: $134.20 Full valuation - less than $1 million in value: $220 Full valuation - greater than $1 million in value: $440 |
| Monthly service fee | $10 | $10 |
|
Additional repayments (no charge) |
Yes | Yes, up to 20% during the fixed period |
| Free redraw | Yes | Yes |
| Offset account | Yes | Yes, partial only |
Investment principal and interest
| Variable rate | Fixed rate | |
|---|---|---|
| Interest rate | 6.29% p.a. |
1 year 6.39% p.a. 2 year 6.09% p.a. 3 year 6.39% p.a. 4 year 6.39% p.a. 5 year 6.39% p.a.
|
| Comparison rate1 | 6.42% p.a. |
1 year 6.43 p.a. 2 year 6.38% p.a. 3 year 6.45% p.a. 4 year 6.45% p.a. 5 year 6.46% p.a. |
| Loan term | Up to 30 years | Up to 30 years |
| Max loan to value ration | 90% (or 10% deposit) |
90% (or 10% deposit) |
| Upfront fees | Zero establishment fee. External fees apply. | Zero establishment fee. External fees apply. |
|
Valuation fees (charged at cost, per property) |
Electronic valuation: $134.20 Full valuation - less than $1 million in value: $220 Full valuation - greater than $1 million in value: $440 |
Electronic valuation: $134.20 Full valuation - less than $1 million in value: $220 Full valuation - greater than $1 million in value: $440 |
| Monthly service fee | $10 | $10 |
|
Additional repayments (no charge) |
Yes | Yes, up to 20% during the fixed period |
| Free redraw | Yes | Yes |
| Offset account | Yes | Yes, partial only |
Investment interest only
| Variable rate | Fixed rate | |
|---|---|---|
| Interest rate | 6.42% p.a. |
1 year 6.49% p.a. 2 year 6.19% p.a. 3 year 6.49% p.a. 4 year 6.49% p.a. 5 year 6.49% p.a. |
| Comparison rate1 | 6.46% p.a. |
1 year 6.47% p.a. 2 year 6.42% p.a. 3 year 6.48% p.a. 4 year 6.49% p.a. 5 year 6.49% p.a. |
| Loan term | Up to 30 years | Up to 30 years |
| Max loan to value ration | 90% (or 10% deposit) |
90% (or 10% deposit) |
| Upfront fees | Zero establishment fee. External fees apply. | Zero establishment fee. External fees apply. |
|
Valuation fees (charged at cost, per property) |
Electronic valuation: $134.20 Full valuation - less than $1 million in value: $220 Full valuation - greater than $1 million in value: $440 |
Electronic valuation: $134.20 Full valuation - less than $1 million in value: $220 Full valuation - greater than $1 million in value: $440 |
| Monthly service fee | $10 | $10 |
|
Additional repayments (no charge) |
Yes | Yes, up to 20% during the fixed period |
| Free redraw | Yes | Yes |
| Offset account | Yes | Yes, partial only |
Fixed or Variable - which home loan is best for you?
There’s pros and cons to both sides. If you’re more comfortable knowing exactly what your loan repayment will be each month then a fixed rate may be best for you. If you want more flexibility or are happy with a fluctuating interest rate which may mean lower repayments, then a variable rate may suit you better.
What's great about a fixed rate?
Reliability and security
A fixed rate home loan has an interest rate locked in for a specified time (usually up to five years), regardless of changes to interest rates. This means your loan repayments will stay the same over the fixed period.
A fixed rate can make budgeting easier, because you’ll have certainty about how much of your income you need to put aside for your loan repayments.
And if interest rates rise, fixing your rate can secure a lower rate and could save you money over the long term.
What's great about a variable rate?
Flexibility and potentially lower interest rates
A variable rate loan has an interest rate that can fluctuate depending on changes to the bank's borrowing costs. This means your repayment amount can change too.
When interest rates are low a variable rate can work in your favour – but be aware that rates can rise, and when they do, so too may your repayment.
If shortening your loan term is a priority, a variable rate may be more suitable, as you can make additional repayments whenever you want.
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Things you should know
Terms and conditions, fees and charges apply. All information including interest rate is subject to change without notice. Full details available on application. Lending criteria apply.
1 Important information about comparison rate: The comparison rate displayed is calculated for a loan of $150,000 over 25 years. If the comparison rate relates to a loan with a fixed interest rate, the comparison rate has been calculated on the basis that our current applicable variable rate will apply at the end of the fixed rate period. WARNING: The comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
