2 Year Fixed Rate Home Loans Comparison
Applying a fixed interest rate to your home loan can be a viable alternative to a traditional honeymoon or introductory interest rate home loan. While most introductory rates are offered for just six or 12 months, who wouldn’t want a longer honeymoon – why not up to two years?
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Featured 2 Year Fixed Home Loan
Apply for State Custodians Mortgage Company Standard Fixed Home Loan – 2 Year Fixed Rate and enjoy no application fees, no account keeping fees, an unlimited redraw facility and the ability to make additional repayments.
- Interest Rate of 5.92%
- Comparison Rate of 6.69%
- Application Fee of $0
- Maximum LVR With LMI: 95%
- Minimum Borrowing: $150,000
- Maximum Borrowing: $1,000,000
2 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 | |
|---|---|---|---|---|---|---|---|
 State Custodians Mortgage Company Standard Fixed Home Loan – 2 Year Fixed Rate |
Keep your repayments on track for this 24 month fixed rate loan. | 5.92% | 6.69% | $0 / $0 | 95% | $150,000 / $1,000,000 |
 
|
 Resi Home Loans – Smart Option Home Loan |
The Smart Option Home Loan offers you a low rate for 1 year, Plus no ongoing, no application fee. | 6.49% | 6.99% | $0 / $0 | 95% | $50,000 / $20,000,000 |
|
 MyRate Fixed Rate Home Loan – 2 Year Fixed Rate |
Avoid interest rate hikes with this competitive rate. | 6.05% | 6.30% | $0 / $0 | 95% | $100,000 / $2,000,000 |
|
 HomeStar Fixed Rate Loan – 1 Year Fixed Rate |
A flexible loan protected against interest rate hikes. | 5.95% | 6.48% | $0 / $0 | 95% | $150,000 / $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 |
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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 |
|
 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 two year fixed rate home loan guarantees you fixed repayments and offers you the stability you may need and want from your home loan in the medium term. A two year term can be the perfect balance between locking in a short term fixed rate only to have rates do nothing, and being locked into a long term fixed rate where you’ll see a lot of movement. Instead, in two years interest rates may have stopped rising and started falling again and this will allow you to refinance to a new, even lower, fixed interest rate, or enjoy the flexibility of a low variable rate for a while.
To help you decide whether a medium term fixed interest rate for two years is the right option for your home loan needs, all of your questions are answered below so you know what you’re looking for in a fixed rate home loan, how to decide if this is the right loan for you, and how to compare to find the best two year fixed rate loan.
What should you look for in a two year fixed rate home loan?
The features of a fixed interest rate home loan are simple in that you are locking in a fixed interest rate for a fixed term, and you are rewarded with fixed repayments. To make sure you are choosing the best two year fixed rate home loan you should be looking at:
- Whether the interest rate is a good indicator of the future. Two years is not an overly long time when it comes to the official interest rate considering in the 12 months from October 2009 to October 2010 when interest rates first rose after the GFC, there have been just six increases. Therefore, don’t settle for a high fixed interest rate thinking that there will be an interest rate increase every month because interest rate rises in consecutive months for extended periods of time are rare.
- An affordable loan. Even though you are locked into a fixed rate for just two years, you want to make sure your loan is affordable in that time with low maintenance and transaction fees because to refinance a home loan during a fixed rate term can cost tens of thousands of dollars.
- The revert rate. This is where you have to step back from focussing on fixed rates and fixed terms and look more closely at the loan they are applied to. Look at the type of loans you are comparing because you can choose a basic loan, a low rate home loan, a low doc loan or one with a professional package and all can have a fixed rate imposed. However, each type of loan has differing features and these features affect the interest rate charged and the interest rate your loan will revert to in two years.
Why should you choose a two year fixed rate home loan?
Most fixed interest rate loans will allow you to choose a fixed rate term from between one and 10 years, with some loans in Australia now offering fixed terms up to 15 years. So to help you choose the right fixed loan term, consider the benefits of fixing for two years:
The first year in a new house flies by. You may think that a one year fixed interest rate is long enough to help you get settled into your new home, however, by the time you adjust to your new lifestyle, furnish and finish your home, you will find a year has already passed. With the first year in your new home over and the second beginning you have probably had little chance to build your savings back up and you won’t have been able to make additional repayments to your loan either so the extra time of having fixed, reliable repayments can help with the final adjustment period.
Circumstances change within two years of moving to a new home. a lot can happen in your personal or family life in two years and at the end of a two year fixed rate term it can be the perfect time to consider moving homes and loans, and with the end of your fixed rate term you don’t have to worry about exit fees. In two years you could have had your first child or your toddlers are now growing into young people who need their own space. Or you may have bought the property to flip it and in two years you have been able to complete renovations, build some capital growth and are ready to make a profit on your sale.
Who should choose a two year fixed rate home loan?
A fixed interest rate home loan is not suited to everyone as we all have different incomes, budgets and spending and savings habits, which is why there is such a choice when it comes to fixes rate home loan terms. However, you might find that a two year fixed rate home loan fits you perfectly if:
- You have a regular income. If you have a steady job and your income doesn’t change from month to month then you can’t easily keep up with changing repayments. Where self employed home owners or people who worked on commissions or received bonuses would be able to make additional repayments, if you have a fixed income and a fixed lifestyle you can benefit from fixed repayments.
- You have a family. Children are expensive and they come with their own set of emergency expenses so if you are raising a family then you may welcome the reliability of steady repayments, which are easier to budget for.
- You are an empty nester. If you have settled into your home and your finances are organised you are probably not planning to move or refinance for a while. With a fixed rate home loan you can focus on living, and enjoy the extra income now without channelling all of it into your home loan, which is taking care of itself.
How do you choose the best two year fixed rate home loan?
To choose the best two year fixed rate home loan you will need to make sure that a fixed rate loan is the best option for you, and then choose the best fixed rate home loan for your needs. To make an informed comparison of fixed interest rate home loans:
- Compare with variable rates. The standard variable rate home loan is the most popular loan in Australia and as a result there are a myriad of incarnations which could suit you and they don’t have to be more expensive than a fixed rate loan. For example, basic variable rate loans have very few features and can have interest rates one to two per cent lower than fixed rate loans.
- Compare with other terms. Think about what will be happening in your life in the next two years and make sure this is the right loan term for you. Would you prefer a shorter one year honeymoon to reassess your options sooner or would you like to fix for five years and focus on some other long term goals?
- Compare with split loans. A split loan can be the perfect compromise for you if you want the reliability of a fixed repayment which protects you from interest rate rises, while still having the flexibility of additional loan features, and the benefits if rates go down.
- Look for the lowest fixed interest rate. This is the interest rate which will be applied to your loan for the next two years so make sure that it is competitive.
- Get the best service. Your home loan is a very important investment and you want to make sure you are dealing with a provider who is easy to contact, listens and resolves your issues and helps you make the most of your loan product.
- Compare the additional features. A fixed rate home loan does not have to be a basic loan product and you can choose from two year fixed rate home loans which offer additional repayment features and redraw for example, but make sure you compare their fees too.
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