Are the Rate Hikes on the Fixed Rate Loan Products Over?

It seems that the interest rate hikes game for home loan fixed rate loan products is far from over. Today, one of the major bank has announced another interest rate hike for most of its fixed rate loan products for both owner occupied and investment purpose, where another non-major player in the market also announced changing its’ fixed rate home loan products from 11th of February.

Another major bank has re-emphasized the importance of “rate lock” option through its broker communication channel today that could be another indication of one or more fixed rate hikes may be on its way.

“Rate Lock” is a special option, which is available to the borrowers if they wish their future home loan to be a fixed rate loan product. Once the borrowers have chosen to exercise this option, the lenders will honor the agreed fixed interest rate for the next 60 to 90 days.

Most of lenders will charge “Rate Lock” fee, and it is important for you (the borrowers) to understand how it works, and you may wish to speak to your banker or broker today to find out if the rate lock option suites your current home loan application.