Fix home loans to avoid coming rate hikes, says Onyx

Current and prospective mortgage holders should act fast to avoid impending rate hikes by locking into a fixed rate home loan for the next twelve months, property services firm Onyx has said.

The company is making a limited time offer aimed at allowing clients to "beat the rate rises" by locking into their current low rate of 6.73 per cent for one year.

Onyx suggested borrowers must look to compare home loans now given that the Reserve Bank (RBA) is widely expected to hike rates next month. Some of the major banks have also hinted they will lift interest rates even if the RBA does not budge.

"It is clear we are about to go through an adjustment," said Onyx managing director Paul Thewlis. "While the Australian market's reliance on variable rates is part of its underlying strength, individual borrowers have a chance to fix in the next few days to avoid the adjustment."

He added that Onyx's offer, which is only open for a few days this week, could make household budgeting much easier while not limiting customers to a fixed rate for the whole life of the loan.

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