WLTH national lending manager Chad Hoy Poy said fixed rates have been increasing dramatically among lenders, while variable rates remain low — the latter, however, might not last.

“Current fixed rates have expected rate rises built in and borrowers should be aware variable rates will change over time,” he said.

Mr Hoy Poy said despite these increases, homebuyers should not be discouraged.

“When applying for a home loan, lenders have a servicing buffer to help reduce risk in regard to rate increases and see if you have enough of a buffer to handle it without extra financial stress,” he said.

“Borrowers should always ensure they can service increased loan repayments over the coming years.”

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