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

By Roisin Kelly-Goldsmith · · 2 min read
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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)

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

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