Recent interest rate rises have increased the number of mortgage holders seeking to lock in fixed rates.
A series of rate rises since May 2022 means some homeowners are now paying around $1,000 each month more than they were earlier this year.
Lenders report a surge in interest for fixed rates, but analysts question whether that will be necessary.
Most variable rates sit below 5% but very few lenders are offering fixed rates below that level with the big four offering fixed rates between 5.29% and 6.69%.
That means changing now could result in borrowers paying even more than they are currently paying and it could take another three or more rate rises before it breaks even.
Some analysts predict the official interest rate will stop at 3.1%, but others predict it will reach 4%.
There is also some speculation that the RBA may start cutting rates in late 2023.
For those who fixed their rates in 2020 and 2021, there is a financial shock awaiting them, with estimates that there is $400 billion worth of fixed-rate home loans due to expire by the end of 2023 which equates to about $12 billion worth of additional repayments.
“Invariably as buyers’ borrowing capacity has been reduced with interest rate hikes, the reality is people are having to work off amended budgets, and they have to look at slightly different configurations,” she says.
