Home News Rate hike fear sparks fixed loan rush

Rate hike fear sparks fixed loan rush

Font size :
However Luke Scheales, national sales manager for Mortgage House, warns this is the time when borrowers must keep a cool head and not adopt a knee-jerk reaction to the interest rate hike. "Rather than panicking, what you need to do is to start setting yourself up where you can actually pay some additional funds into your loans now, reduce debts, get rid of credit card debts and personal loans where you are paying higher rates," he says. "Go back to your vendor and see if you can refinance those now to get rid of those payments then put money into the home loans. You need to make sure that you've got loans with a redraw facility so that you can put in any extra funds later on. If you're struggling to make payments now then you should look at fixing." The looming rate hike is a concern not just to borrowers but also to lenders who are likely to feel the pinch. "We expect if this rise takes place now it will lead to more loans going into arrears and slow the property market down further in the prime mortgage belt areas," says Greg Stevens, AIMS general manager for servicing and marketing. "We also see this will trigger more refinancing opportunities for borrowers as they compare their interest rate to other offers in the market place."

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

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Friday, Aug 18, 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