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How to protect yourself against mortgage rate rises

With potential rate hikes on the horizon, switching to a fixed rate mortgage is an appealing option for some Aussies

Australian mortgage rates are likely to rise from their record-breaking lows, which has one in five homeowners looking at switching to a fixed rate loan. According to a recent survey conducted by Ipsos, 62% of those ready to switch intend to do so within the next nine months.

Deciding how to structure your loan is one of the most important financial decisions you can make as a homeowner. Do you lock in a fixed rate, take your chances on a low variable rate, or divide your loan between the two?

Here’s How You Do It:

Step 1: Select your type of property below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

It’s a complicated question, especially with the unpredictable Australian housing market. Experts predict that rates are going to go up, but when? And by how much?

In order to make an educated decision before you make the switch, visit HomeLoansAustralia.com. Compare loans from a range of trusted lenders, all in one place, and get a free, easy-to-read quote.

From there you’ll be able to talk to an experienced mortgage advisor, either in person or over the phone, whichever works best for you. Get up to date advice on market movements and available loan rates so you can make a smart decision about how to save on your home loan.

If you’re hesitant to shop around because it sounds like a hassle, remember that doing nothing often leads to paying too much. HomeLoansAustralia.com makes it easy to switch, because your consultant will manage the paperwork for you and liaise with the lender on your behalf.

The Reserve Bank Australia recently found that approximately one-third of Australian mortgage holders would not be able to cover a full month’s payment if they suffered a loss of income. That data suggests that a large number of Aussies are in over their heads on the mortgage, and that could lead to serious debt.

Factor in the possibility of out-of-cycle rate hikes and the upcoming bank levy and Aussie mortgages could soon be in a very precarious position.

Fortunately, switching to a secure loan with a lower interest rate can save you a large amount of money over the life of your loan. If you’re thinking of locking in a fixed-rate mortgage, compare loans before 1 July to avoid potential rate hikes related to the bank levy. The sooner you compare, the sooner you can start to save.

Get Started Now:

Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

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