Should you lock in your home loan rate now...before it's too late?

For homeowners flirting with the idea of locking their interest rates in now before the next round of rate hikes, December data from Mozo's Banking Roundup suggests the Christmas break may be their last chance.

As detailed in the report released today, home loan providers behaved similarly to last month by continuing the rate hike trend, but this time concentrated more on investor loans and rates attached to four and five year fixed terms.

So far this month, 122 home loan rates were pumped up, despite the RBA keeping the official cash rate on hold since August.

It wasn’t all bad news though, nine providers, including ME Bank, reduced one year fixed rate loan rates by up to 45 basis points.

According to Mozo Director Kirsty Lamont, the rate hikes on longer terms are far from over, with more lenders likely to follow suit and lift their rates in the New Year.

“I would urge borrowers considering a fixed rate to act fast, as the low rate deals on four and five year terms that we’ve seen in 2016 might not be around for long,” she added.

Even with all the negative news surrounding out of cycle interest rate increases, Aussies still have access to fixed rates under 4%. See below for the best deals found in our database:

Top fixed rates for owner occupiers

  • 3 years: 3.49% by My Credit Union
  • 4 years: 3.75% by BCU*

Top fixed rates for investors

  • 2 years: 3.69% by CUA
  • 3 years: 3.49% by My Credit Union
  • 4 year: 3.75% by BCU*

*Product no longer exists (12/17/2018)