Most Aussies 'reluctant to commit to home loans'

Many Aussies are reluctant to commit to taking out home loans and buying a property due to the nation's economic uncertainty at the moment.

This is according to RP Data research director Tim Lawless, who cited the recent Westpac-Melbourne Institute Consumer Sentiment Survey, which revealed that the majority of people expect two rate hikes in the next 12 months, reports the Australian Associated Press.

With this expectation in mind, it may be a good time to look for low interest home loans with fixed rates to take advantage of the 4.75 per cent level set by the Reserve Bank of Australia last November.

However, Mr Lawless asserted that many people are adopting a wait-and-see approach to property purchases.

"Combined with volatile equity prices, global financial market instability and soft house prices, Australians are understandably reluctant to make high commitment decision at the moment," he stated.

While the expectation that there will be a hike soon may make the idea of going to mortgage brokers to find fixed rate options more attractive, consumers were recently warned to think the decision through thoroughly by Consumer Action co-chief executive officer Carolyn Bond.

She observed that if interest rates dip significantly later on, Aussies may end up paying over the odds for their property.

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