Fixed Rates Tipped to Rise

The world is still digesting what a Trump US presidential election win means to the world and the world economy. But what has a Trump election win have to do with Australian interest rates on home loans? How will a Trump election win affect first home buyers in Australia?

How can a Trump win affect home loans in Australia? 

Experts and business’s around the world are currently evaluating the implications of Trump’s proposed policies. Many experts are predicting that Trump’s election promises, if implemented, will result in higher inflation. Higher inflation tends to lead to higher interest rates.

Over the last few weeks a handful of Australia’s smaller lenders have raised their fixed home loan interest rates. These include Firstmac, P&N Bank and Illawarra Credit Union. Westpac has also reduced a discount offer on some fixed loans.

Many experts are now tipping that medium and larger lenders (including potentially the big 4 banks) will also review and potentially raise fixed home loan rates in the coming weeks.

happy young couple getting advice in office with beautiful business woman

I was just about to apply for my first home loan…what do I do!

Firstly, I suggest anyone with a home loan or about to apply for their first home loan not to panic. The best thing I can recommend any first home buyer do is talk to a Mortgage Broker. This may sound cliche, but the services of a Mortgage Broker is what you will really need at a time of uncertainty like we are currently experiencing. A good Mortgage Broker is very valuable to a first home buyer as they will:

  • Assess your situation, needs and goals
  • Research the home loan market and consider economic factors for you
  • Advise on a course of borrowing action (including home loan product) that is suitable for you
  • Research and assist with any Government incentives for first home buyers (e.g. First Home Owners Grant eligibility assessment and application assistance).


Do I get a fixed loan or a variable loan? 

One of the most common questions will likely be around “do I get a fixed home loan or a variable home loan?” A Mortgage Broker can help you explore and compare these options to work out a suitable choice for your specific circumstances. It could be a case of having a home loan that is partly variable and partly fixed (i.e. Split Loan). A Mortgage Broker will explain how you can do this and whether this is an option for you.

Next Steps

If you think you’re ready (or almost ready) to get a home loan why not book a complimentary no obligation consultation with an FHBA Broker today. Our FHBA Brokers are first home buyer specialists and can assist you with your understanding of the discussion in this blog as well as your understanding of other home loan concepts and the loan process.

Book your complimentary consultation here:

Not ready to speak to a FHBA Broker yet? You can still compare a range of current variable and fixed home loan interest rates by visiting our home loan comparison page.

First Home Buyers Australia
First Home Buyers Australia

Australia’s leading organisation specialising in assisting first home buyers achieve the great Australian dream of property ownership.