Fears of further rate hike spark fixed loan rush

Font size :
The AFG Mortgage Index for November found that one in four borrowers are choosing fixed rate mortgages, the highest level recorded by the firm for this type of loan. Malcolm Watkins, AFG executive director, said that the surge in the number of borrowers opting for fixed term mortgages shows that homeowners believe there are more rate rises to come. "People do not lock in fixed rate mortgages if they believe that rates have peaked," said Watkins. "The relatively high proportion of buyers going fixed rate is not so much a reaction to the November rate rise as a signal of concern that rates may very will be going up again." With demand for fixed term loans expected to grow even further, the Commonwealth Bank of Australia recently slashed rates on its 5-year fixed term loans by 25 basis points to 7.14% p.a. Customers choosing a fixed rate loan as a part of the bank's professional package are also entitled to a further 0.15% discount, effective 5th December.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords