It might be worth considering applying for a fixed-rate loan if one industry expert's views are anything to go by.
For those looking for affordable home loans it might be worth considering fixed rates as a cheap form of insurance, one industry expert has noted.
In a piece for the Age, Sheyne Walsh, head of lending services at Centric Wealth, said these products could be a solution, although he admitted that times are uncertain.
For individuals taking out a $500,000 home loan, an interest rate rise of one per cent could lead monthly repayments to jump from $3,533 a month to $3,859.
Mr Walsh added: "I ask people what they are earning and what they were earning two years ago. If it has not changed in that time then a lot of the conversation will focus on fixed rates."
But he stated that borrowers do not like to give up the lump sum payments and re-draws that come with a variable-rate loan.
This advice comes after Andrew Carswell, writing for the Daily Telegraph, quoted a mortgage industry expert who pointed out that a lot of banks are refusing to issue bridging loans to consumers.
By Emma North
