Compare 5 year fixed home loan rates

Are you looking to compare 5 year fixed home loan rates? See our current interest rates below.
Compare 5 year fixed home loan rates

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Last updated 25 Jul, 2024

What are the Pro's & Con's of Getting a 5 Year Fixed Home Loan?

Fixed rate home loan pros

  • Stability in repayments

    When fixing your home loan for 5 years you will have the same repayment amount for the duration of the fixed rate. 

  • Peace of mind

    If you’re worried about the change in interest rates and how that affects your home loan, a fixed rate provides peace of mind knowing your situation won't change for 5 years regardless of what happens to interest rates in the market. 

  • Budget benefits 

    Having the same home loan repayment for 5 years can allow you to budget more accurately with less need to review and change your budget.

Fixed rate home loan cons

  • Limited features

    Fixed rate home loans may not have the same features as variable loans and can limit additional payments that can be made. The features offered can vary depending on lenders. Speak to your Mortgage Choice broker to ensure your loan has the right features for you.

  • Break fees

    If your circumstances change and you need to payout your loan early or break your fixed rate you may be penalised with a break fee. 

  • Repayments won't fall 

    If interest rates do fall in the market, your home loan repayments will not fall. 

5 Year Fixed Rate FAQ's

A 5 year fixed rate home loan is a type of loan that has a specific interest fixed for 5 years and therefore fixed loan repayments.

Once the 5 years on a 5 year fixed rate home loan is up, you will have the option to fix your loan again for another period of time at the current market rates or convert the loan to a variable interest rate for the remainder of the total life of the loan.

Understanding the difference between the two will help you choose between fixed and variable home loans. Fixed interest rates come with a set interest rate for a set period of time, whereas variable rates can change over time based on the current economic climate.

With a variable rate, you can benefit when your lender drops interest rates. Although if rates rise, your interest rate and repayments may also rise, where a fixed rate loan will have the same repayments throughout its duration.

No, interest rates for owner occupied and investment home loans differ for all home loan types, this includes 5 year fixed rates.