fixed interest rates

The latest bank to increase its fixed - lending rates is Commonwealth Bank.

A leading mortgage broker has stated that borrowers have more than likely missed their opportunity to lock in low fixed home loan rates despite there being a forecast rise in lending costs.

If Commonwealth Bank customers fix their mortgage interest rate they will be charged up to$116 more in monthly repayments on the average home loan.

Home owners believe that variable interest rates have bottomed out and are rushing to lock in their rates.

The Australian has reported that 7.76 per cent of all loan approvals last month were for fixed rate loans, up by 6.6 per cent in May.

Homeowners fear that interest rates have bottomed and that they will rise so they are rushing to lock in their mortgage rates.

A senior executive from one of the big four lenders has come out and said that further variable mortgage rate increases were unlikely to take place in the current round of rate adjustments by the major banks.

Data released yesterday has shown that the percentage of first home buyers has risen to the highest level on record.

Since the Australian Bureau of Statistics started collecting data in 1991, first home buyers now make up 28 per cent of all homes financed which is the largest proportion recorded since they first began.

Despite recent hikes by all the major banks the NAB believes that a price war is about to erupt in the fixed-rate home loan market.

Steven Shaw head of NAB's mortgages said that he expected price competition between the banks to intensify in the next few months as lenders vied for investment borrowers.

Despite the Reserve Bank cutting official interest rates this month NAB, and Westpac have confirmed that they have raised interest rates on fixed home loans.