1 Year Fixed Rate Home Loans Comparison
An introductory interest rate on a home loan is a common feature and is a way for providers to attract new home loan customers with enticingly low rates. However, a one year fixed interest rate is a different type of introductory interest rate which aims to set you up in a secure financial position from the beginning, rather than drawing you in for just the honeymoon and then leaving you hanging.
Featured 1 Year Fixed Home Loan
The UBank UHomeLoan – 1 Year Fixed Rate offers you a low rate fixed for 1 year, Plus no application fee,no legal fee.
- Interest Rate of 5.93%
- Comparison Rate of 6.51%
- Application Fee of $0
- Maximum LVR With LMI: 80%
- Minimum Borrowing: $100,000
- Maximum Borrowing: $1,000,000
Featured 1 Year Fixed Rate Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 UBank UHomeLoan – 1 Year Fixed Rate |
A flexible loan protected against interest rate hikes. | 5.93% | 6.51% | $0 / $0 | 80% | $100,000 / $1,000,000 |
 
|
 Illawarra Home Loans Bank Beater Fixed Home Loan – 1 Year Fixed Rate |
A fixed home loan with a low rate fixed for 1 year, Plus no application fee,no legal fee. | 6.23% | 6.50% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 Resi Home Loans – Flexi Fix |
Fix up to 50% of your home loan at a low fixed rate and the other 50% at a low variable rate. | 5.75% | 6.69% | $0 / $0 | 95% | $50,000 / $2,000,000 |
|
UBank UHomeLoan – 1 Year Fixed Rate |
1 Year Fixed Rate home loan from UBank. | 5.93% | 6.51% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Fixed Home Loan – 1 Year Fixed Rate |
Enjoy certainty in your repayments with this great fixed rate loan. | 5.97% | 6.75% | $0 / $0 | 95% | $150,000 / $1,000,000 |
|
 MyRate Fixed Rate Home Loan – 1 Year Fixed Rate |
Manage your budget with a fixed rate loan. | 6.05% | 6.32% | $0 / $0 | 95% | $100,000 / $2,000,000 |
|
Illawarra Home Loans Bank Beater Home Loan |
A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.18% | 6.46% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 Easy Street Easy Home Loan – 2 Year Fixed Rate |
Apply for an Easy Street fixed rate home loan and get a competitive loan with a fixed interest rate. | 6.29% | 6.57% | $500 / $0 | 95% | $100,000 / $0 |
|
 Community First Fixed Home Loan – 3 Year Fixed Rate |
A fixed rate home loan that allows you to make additional repayments during the fixed period and access to an unlimited redraw facility with no minimum redraw amount. | 6.29% | 7.37% | $500 / $0 | 95% | $100,000 / $1,000,000 |
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A typical honeymoon interest rate or introductory interest rate is offered on a standard variable loan product for the first six to 12 months. This interest rate may be several percentage points lower than the current standard variable rate and the discount can be applied in two ways:
- As a set discounted rate. For example if the standard variable rate of a honeymoon loan ways 7% the introductory rate may be set at 6% for 12 months. This means that if the provider raises their SVR to 7.25% for example, your introductory rate stays the same.
- A set discount. In this instance you may be offered a 1% discount for 12 months on the provider’s SVR which at the time you apply is 7% so you can be paying just 6% interest. If the provider raises their SVR to 7.25% during the first year of your loan, your introductory interest rate rises to 6.25% in line.
A one year fixed interest rate is a third type of introductory loan, and one which can dispel the myths of fixed rate loans being more expensive. While a one year fixed interest rate term may seem fleeting, it can be worth considering that interest rates have been rising for the 12 months between October 2009 and October 2010 and if this cycle stays steady or continues in the next 12 months, you will benefit from locking in now.
Features of a one year fixed rate home loan
A fixed interest rate loan can be almost any type of loan, to which a fixed interest rate term has been applied. Therefore, while you will need to compare the base features of the home loans you are looking at, a fixed interest rate includes features such as:
- A fixed rate for the entire term. When you choose a fixed rate home loan you don’t get to choose the rate but you do get to choose the term and with a one year fixed interest rate home loan your interest rate stays the same for 12 months regardless of the decisions from the RBA board meetings, or from your provider.
- Fixed repayments. When you apply for a home loan your repayments are calculated on the amount you need to pay to clear your loan amount in the loan term at the interest rate on that day. As a result it is the interest rate which makes your repayments fluctuate and when the interest rate is fixed, you can budget for fixed repayments each and every month for 12 months.
- A basic loan. During your fixed interest rate term you will be getting a basic loan with few additional features and this can mean fewer fees.
- Your choice of loan. A one year fixed interest rate can be applied to most loans so you have the freedom to choose the loan you want and the apply for a fixed term.
Benefits of a one year fixed interest rate home loan
While fixed interest rate loans have the reputation of being immovable and unaccommodating, you can see that you have a lot of choice in how and when you fix your home loan interest rate. Other benefits of a one year fixed rate home loan include:
- Helping you make a decision. If you have been searching for the perfect home for some time, you will have realised that there is not going to be a sudden drop in prices which will make the whole process more affordable – instead you have to plan and budget for what you can afford now. This is important to remember when buying a home because as expensive as it seems, nothing is going to be as cheap again as it is right now. If you have been looking for a home and a loan for more than a year you will have seen the fluctuations in interest rates, and if you lock in a fixed interest rate you can look back in a year’s time and see how much cheaper your loan was.
- Set and forget. A fixed interest rate loan has few additional features, does not allow you to make additional repayments or redraw those funds and doesn’t have offset account access. As a result you don’t have to think about the loan during the fixed term.
- A short fixed term. Usually if you change your mind about a fixed interest rate loan you are looking at costly exit fees to refinance. However, with a one year fixed rate term you don’t have long to wait if you want to get out.
Who are one year fixed rate home loans suited to?
There are so many different types of loans because there are so many different types of home buyers and you may be suited to a one year fixed rate home loan if you:
- Are a first home buyer. Even with grants and concessions buying a home is a very expensive exercise for first home buyers who are often in their first job of their career, working their way up and just realising how much they needed to be saving. As a result, after finally buying their first home, first home buyers have little cash left over to absorb interest rate rises in their first year of home ownership and can benefit from a fixed repayment.
- Like control and certainty. Some people thrive on order and organisation and if you are one of those people you will see paying a slightly higher fixed rate in some cases a price worth paying for that certainty of repayments.
- Have a lot of other commitments. If you’re saving for the future, focussing on growing investments or trying to pay off debts, you probably have all of your spare cash diverted elsewhere. To allow you to more easily stick to your budget and leave your spare funds for your other commitments you can benefit from a fixed rate loan.
How to compare one year fixed rate home loans
A fixed interest rate home loan is a popular home loan product and so you can have a lot of work ahead of you to narrow down your choices. To make sure you are making meaningful and informed comparisons:
- Compare fixed rates. One year fixed interest rates can be lower than the rates on some variable home loans so take the time to shop around because each provider has their opinion of where official rates will be in 12 months.
- Compare the revert rate. This is the interest rate which is applied to your loan at the end of the fixed rate term and while it is variable and you can’t know for certain what it will be, comparing this rate across providers will give you some indication of the most affordable option.
- Compare loan features. Some fixed interest rate loans can be very inclusive and if you are interested in keeping flexibility of features during your fixed rate term, look for the features you want and need in the next 12 months.
- Compare the current economy. When the economy is stable it is a good time to consider a fixed rate loan because banks are not raising their fixed rates to take advantage of the chaos. When rates are not rising or falling rapidly it can mean we are looking at a stable short term future.
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