Mortgage brokers are recommending consumers who are about to sign for a new mortgage should consider fixing the rate on their home loan.
The Loan Market Group points out to home owners that the rate on fixed mortgages have already started to rise, despite the Reserve Bank of Australia's trend of lowering rates.
"Many consumers are unaware that the variable rates move differently to fixed rates and by the time variable rates have bottomed they have missed the best opportunity to fix," Loan Market Group executive director John Kolenda said.
"If you are able to secure a great fixed rate in the high four per cent or low five per cent range for a three-to-five-year period then you should seriously look at it."
Last year saw home loan rates nearing 10 per cent. In the past six months rates have fallen by around 4 per cent with some products down to below 5 per cent.
Borrowers can get a certain degree of certainty from fixed rate loan products while split variable/part fixed gives flexibility should rates drop further than anticipated.
The Reserve Bank meets tomorrow to discuss official interest rates. If the cash rate is cut again, home owners will be hoping that the banks pass on the cut to them.
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