Best 3 Year Mortgage Rates 2025 – Lock In Low Payments Now

What influences 3 year mortgage rates?

Understanding the factors behind 3-year mortgage rates is key to securing a strong deal. These rates shift frequently, influenced mainly by the Reserve Bank of Australia’s (RBA) cash rate, which sets the benchmark for lending nationwide. When the RBA moves, lenders usually follow. Other factors include:

• Bank funding costs: The bank’s own borrowing expenses.

• Competition: Lenders may offer sharp introductory rates to win customers.

• Your financial profile: Deposit size, credit history, and job stability influence your rate.

• Loan type: Rates differ between principal & interest and interest-only loans.

Because these variables make comparison difficult, an independent broker such as those available through HeyNest, can help you navigate the market and identify the most competitive 3-year rates for your situation.

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Are 3 year fixed rates right for you?

Fixing your rate for three years gives you predictable repayments and strong budgeting certainty. It’s a smart choice if you expect RBA rate increases or want stability, especially as a first-home buyer.

However, fixed rates come with trade-offs:

• Less flexibility: Extra repayments may be limited and break fees can apply.

• No benefit from rate drops: If variable rates fall, you remain locked into your fixed rate.

Whether a 3-year term suits you depends on your goals and risk appetite. Brokers on the HeyNest platform can provide independent guidance on whether this structure aligns with your plans.

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Access to many lenders

Compares and negotiates the best market rates for you.

Dedicated, personalized guide every step of the way.

Only offers their own limited products.

Standard, often non-negotiable in-house rates.

Standardized service; often no single dedicated contact.

How to secure the best 3 year mortgage rates?

Getting the best 3-year rate requires more than scanning bank websites. Preparation and expert support make the biggest difference.

Steps to maximise your rate:

• Strengthen your profile: Clean up your credit, reduce debts and aim for a lower LVR.

• Get your documents ready: Income proof, savings history and expenses help speed up approval.

• Compare widely: Competitive rates often come from second-tier or non-bank lenders.

• Negotiate: Rates and loan terms can often be improved, brokers have the leverage to do this.

By working with an independent broker through HeyNest, you access a broad panel of lenders and expert negotiation, your most efficient path to securing the most competitive 3-year rate available.

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Frequently asked questions

What is the current average 3-year fixed rate in Australia?

Rates are constantly changing; you must check real-time data or consult a broker for the most accurate current market average.

Are there fees for breaking a 3-year fixed rate early?

Yes, fixed loans typically incur significant "break costs" if repaid early or refinanced before the term ends.

Is a 3-year fixed rate better than a 5-year fixed rate?

The 3-year term offers less long-term commitment than 5 years; your choice depends on your risk tolerance and rate-change predictions.