Home loan customers in a rush to fix

Homeowners are eyeing the bottom of the home loan market and are scrambling to lock themselves into a fixed home loan interest rate deal, brokers reveal.

The Daily Telegraph reports that mortgage arrangement companies have been flooded with enquiries from home loan customers looking for a competitive fixed-rate deal, with the paper claiming that the onrush began around the same time that Commonwealth Bank decided to lift its rates.

In a move widely criticised by the government, the bank announced that it was raising interest rates by 10 basis points to align itself with the headline rates of its competitors.

Speaking to the paper, Mortgage Choice spokeswoman Kristy Sheppard said "It’s interesting to see new borrowers locking in rates, despite the fact fixed loans are priced higher than variable loans."

The company has seen two straight months of rising fixed-rate enquiries, with consumer interest peaking in the last few weeks.

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