Media Release

In this low interest world, are fixed home loans dying?

  • Fixed home loans fall to a 21-month low
  • List of July 2018 out-of-cycle rate changes
  • finder.com.au reveals now might be a good time for mortgage holders to fix

12 July, 2018 - According to the latest Australian Bureau of Statistics (ABS) housing finance figures analysed by comparison site, finder.com.au, the percentage of fixed home loans issued in Australia has fallen to a 21-month low:

Money Expert at finder.com.au, Bessie Hassan said the RBA cash rate has been stagnant at 1.5% since August 2016.

“Over this period, the percentage of fixed loans on the market reached a high of 19% in August 2017, as Aussie homeowners jumped on board the low-interest bandwagon.

“Since then, the proportion of fixed loans had fallen back significantly to 12% which is around where it was when the cash rate first fell to 1.5%.

“The fact that the cash rate remains at a historical low with no change in almost two years, indicates that there’s less urgency among Aussie homeowners to lock in a rate. They’ve been riding this wave for a while now – however the tide could be turning.

“A rate rise is a matter of ‘when’ and not ‘if’ – with 84% of leading economists predicting the next cash rate move to be in a positive direction. With this in mind, now might be a good time to consider locking in your rate – especially given the number of out-of-cycle rate changes we’ve seen in recent weeks,” Ms Hassan said.

Out-of-cycle rate changes:

Lender Change Date effective
Variable rate
Bank of Queensland Up by 0.09% - 0.15% July 2
Heritage Bank Up by 0.05% - 0.30% July 2
IMB Down by 0.20% July 2
QBANK Up by 0.06% July 4
Macquarie Bank Up by 0.06% - 0.10% July 10
Fixed rate
Heritage Bank Down by 0.14% - 0.20% July 2
The Rock Building Society Down by 0.09% July 5
MyState Down by 0.09% July 5

(source: finder.com.au)

Ms Hassan said even a small interest rate rise could hurt Aussies especially those already struggling to keep up with their mortgage repayments.

“With more than half of Australian mortgage holders already admitting they couldn’t handle a $100 rise in monthly repayments, it’s evident many Aussies are already faced with mortgage stress.

“Refinancing could save you thousands. Additionally, fixing could give you the added peace of mind you’ll be able to keep up with your mortgage repayments, regardless of any future rate changes,” she said.

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Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About us

More than 3 million Australians turn to finder.com.au every month to save money, time and make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.

Our free service is 100% independently-owned by two Australians: Fred Schebesta and Frank Restuccia. Since launching in 2006, we’ve helped our users make more than 17 million decisions.

We continue to expand and launch around the globe, and now operate in the United States and United Kingdom. For further information visit www.finder.com.au.

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