The Commonwealth Bank started the fixed loan rate war last month (July) by dropping its five year rate to 4.99 per cent, resulting in the other majors following suit.
But the nation largest mortgage broking group, Australian Finance Group, found that in June only 24 per cent of new home loan customers fixed their loans.
Countries including the US and UK offer much longer fixed rate loans periods with some spanning up to 30 years, but these long fixed rate loan terms are yet to arrive in Australia.
Research from comparison website Finder shows there are six lenders who offer more than 48 fixed home loans for periods of 10 years or above.
This includes all of the big four banks and Newcastle Permanent and RAMS.
The Mortgage and Finance Association of Australia chief executive officer, Phil Naylor, says despite many competitive fixed rate deals, Australians remained hesitant to lock in their loans.
just isn a fixed rate loan country, he says.
the USA, UK and even New Zealand is more of a fixed rate loan country than Australia is, but it is very rare for fixed rate loans to go beyond five years.
have always opted to run with the market. GIVE YOUR MORTGAGE A HEALTH CHECK
Naylor warns there are downsides with locking in fixed rates, including missing out on rate falls or the costs involved to exit the loan early.
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