Our database lists 145 3-year fixed rate mortgage rates from 14 lenders. UBank's FlexFix Principal & Interest (LVR upto 80%) starts at 5.79%.
Bookmark this page or check back often for updates on the latest 3-year fixed rate mortgage rates. The table below shows rates as of [date] and are subject to change.
3-year fixed rate mortgage rates
| COMPANY | TYPE | TERM | INITIAL RATE | THE OVERALL COST FOR COMPARISON IS | PRODUCT FEE | LOAN TO VALUE (LTV) |
|---|---|---|---|---|---|---|
| UBANK | 2 year Offset Tracker at BEBR + 1.22% for 2 years Residential Purchase Offset | 2 years | 5.97% | 6.9 APRC | £1749.00 | 75% |
| UBANK | 5 year Offset Tracker at BEBR + 1.25% for 5 years Residential Purchase Offset | 5 years | 6.00% | 6.7 APRC | £1749.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.15% for 2 years Rate | 2 years | 4.96% | 6.7 APRC | £999.00 | 60% |
| UBANK | 2 year Tracker at BEBR + 0.36% for 2 years Rate | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.76% for 2 years Rate | 2 years | 5.51% | 6.8 APRC | £999.00 | 85% |
| UBANK | 2 year Tracker at BEBR + 1.10% for 2 years Rate | 2 years | 5.85% | 6.8 APRC | £999.00 | 90% |
| UBANK | 2 year Tracker at BEBR + 0.50% for 2 years Premium Exclusive Rate | 2 years | 5.25% | 6.7 APRC | £0.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.35% for 2 years Rate | 2 years | 5.10% | 6.6 APRC | £1999.00 | 60% |
| UBANK | 2 year Tracker at BEBR + 0.55% for 2 years Rate | 2 years | 5.30% | 6.7 APRC | £1999.00 | 70% |
| UBANK | 2 year Tracker at BEBR + 0.57% for 2 years Rate | 2 years | 5.32% | 6.7 APRC | £1999.00 | 75% |
| UBANK | 5 year Tracker at BEBR + 0.60% for 5 years Rate | 5 years | 5.35% | 6.4 APRC | £999.00 | 60% |
| UBANK | 5 year Tracker at BEBR + 1.00% for 5 years Rate | 5 years | 5.75% | 6.6 APRC | £999.00 | 85% |
| UBANK | Residential Remortgage Offset Tracker at BEBR + 1.22% | 2 years | 5.97% | 6.9 APRC | £1749.00 | 75% |
| UBANK | Residential Remortgage Offset Tracker at BEBR + 1.25% | 5 years | 6.00% | 6.7 APRC | £1749.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.15% | 2 years | 4.96% | 6.7 APRC | £999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.36% | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.76% | 2 years | 5.51% | 6.8 APRC | £999.00 | 85% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.50% Premium Exclusive | 2 years | 5.25% | 6.7 APRC | £0.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.35% | 2 years | 5.10% | 6.6 APRC | £1999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.55% | 2 years | 5.30% | 6.7 APRC | £1999.00 | 70% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.57% | 2 years | 5.32% | 6.7 APRC | £1999.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.60% | 5 years | 5.35% | 6.4 APRC | £999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 1.00% | 5 years | 5.75% | 6.6 APRC | £999.00 | 85% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 4.89% | 6.6 APRC | £999.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.24% | 6.6 APRC | £0.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.25% | 6.6 APRC | £0.00 | 75% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.61% | 6.7 APRC | £99.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.21% | 6.7 APRC | £999.00 | 90% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.95% | 6.8 APRC | £0.00 | 90% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 5 years | 5.35% | 6.3 APRC | £999.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 5 years | 5.75% | 6.5 APRC | £999.00 | 85% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 2 years | 5.97% | 6.9 APRC | £1749.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 5 years | 6.00% | 6.7 APRC | £1749.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.10% | 6.6 APRC | £1999.00 | 70% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 2 years | 6.65% | 7.0 APRC | £1999.00 | 70% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.69% | 8.8 APRC | £1795.00 | 65% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.77% | 8.9 APRC | £1795.00 | 75% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 6.30% | 8.9 APRC | £0.00 | 75% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.90% | 8.8 APRC | £1795.00 | 60% |
3-year fixed rate mortgage rates FAQs
What happens at the end of a 3-year fixed mortgage?
When your 3-year fixed rate mortgage rate period ends, your loan typically reverts to the lender's standard variable rate. Here’s what you might encounter once your fixed mortgage ends:
Lender notification
- advance notice: lenders notify you before the fixed rate period ends
- discussion of options: you'll discuss your next steps with the lender
Available options
- refinancing: consider switching to a new lender for potentially better terms
- remortgage or re-fix your loan: lock in a new fixed rate and term with your current lender
- change to variable rate: transition to your lender's variable rate, often the default or revert rate
Actions to take
- evaluate rates: compare new fixed rates, variable rates, and refinancing offers
- consult your broker: seek advice from your mortgage broker to find the best option
Consequences of inaction
- revert rate: if you do nothing, your loan will likely shift to the lender's standard variable rate
- higher costs: this revert rate is usually higher, increasing your monthly repayments significantly
Tips to remember when fixed mortgage is about to end
- plan ahead: review your options before your fixed rate period ends
- stay informed: understand the implications of each choice to avoid higher costs
- use your broker: leverage their expertise to navigate the transition smoothly
When the 3-year fixed rate mortgage rates term concludes, staying proactive and informed will help you make the best financial decision. Always consult with your broker to explore your options and ensure a smooth transition.
What is a 3-year variable mortgage?
A 3-year variable mortgage is a home loan with interest rates that can change over a three-year period. The interest rate typically fluctuates based on the Reserve Bank of Australia's (RBA) cash rate or lender adjustments.
Key features of 3 year variable mortgages
- flexibility: often come with features like redraw facilities and offset accounts
- interest rate fluctuations: rates can increase or decrease, reflecting economic conditions
- potential savings: if interest rates fall, monthly repayments reduce, saving money over the loan term
- extra repayments: borrowers can usually make additional payments without incurring penalties
- refinancing options: easier to switch to a more competitive rate without high break fees
Potential disadvantages of 3-year variable mortgages
- interest rate risk: rates may rise, increasing monthly repayments and financial stress
- budgeting challenges: variable payments make it harder to predict long-term expenses
Comparison with 3-year fixed rate mortgage rates
While 3-year variable mortgages offer flexibility and potential savings, they carry the risk of rising rates. In contrast, the average 3-year fixed mortgage rate provides stability with consistent payments, regardless of market changes. Borrowers must weigh the benefits of potential savings against the certainty of fixed rates.
RBA cash rate changes impact on mortgage rates
Along with individual lenders’ policies, market changes, and global economic factors, the Reserve Bank of Australia is the primary factor of any mortgage rate changes. If the RBA decides to keep the cash rates unchanged, then mortgage rates will typically not change. If the RBA does increase rates, then banks will follow suit.
Understanding the difference between the 3-year fixed and variable home loan rates will help with financial goals and risk tolerance. For more tailored advice, consider consulting with a mortgage broker or financial advisor.
What is better, a 3- or 5-year fixed mortgage rate?
Choosing between a 3-year and a 5-year fixed rate mortgage depends on your financial goals and circumstances. Here are the key points:
3-year fixed rate mortgage rates
- typically lower interest rates than 5-year fixed rates
- provide stability for three years with the option to reassess sooner
- lower penalties for early termination, offering more flexibility
- potential to take advantage of lower interest rates after three years
5-year fixed rate mortgage rates
- offer rate stability and predictability for a longer period
- ideal for those planning to stay in their home longer
- provides peace of mind with consistent mortgage payments
Both options have their benefits. If you prefer more flexibility and the potential for lower rates sooner, a 3-year fixed rate mortgage might be better. If you value long-term stability, a 5-year fixed rate mortgage could be the right choice.
Is a 3-year fixed mortgage a good idea?
A 3-year fixed mortgage can be a good option depending on your financial goals and market conditions. Here are some factors to consider:
Advantages of 3-year fixed rate mortgage rates:
- predictable payments: with 3-year fixed rate mortgage rates, your repayments remain the same for three years, aiding in budgeting and financial planning
- protection from rate increases: if market interest rates rise, your fixed rate shields you from higher repayments
- simplified financial management: fixed rates often come with fewer features and lower fees, simplifying loan management
Disadvantages of 3-year fixed rate mortgage rates:
- limited flexibility: fixed rate loans often lack features like offset accounts or redraw facilities, which are common in variable rate loans
- potential missed savings: if interest rates drop, you won't benefit from reduced rates and might miss out on potential savings
- restricted extra repayments: many fixed rate loans limit additional repayments, potentially extending your loan term
Considerations for choosing 3-year fixed rate mortgage rates
- future rate expectations: assess whether interest rates are expected to rise or fall in the next few years
- financial stability: ensure you can comfortably manage repayments for the duration of the fixed term
- loan features: determine if the simplicity of a fixed rate loan aligns with your financial needs and goals
3-year fixed rate mortgage rates offer stability and predictability, which can be good for borrowers seeking short-term financial certainty. It's important to weigh these benefits against the potential limitations and missed opportunities for savings if rates decline.
Evaluate your financial situation and market conditions carefully before committing to a 3-year fixed rate home loan. Consulting with a mortgage broker can provide tailored advice to ensure this loan type aligns with your financial strategy.
