Borrowers turn to fixed rate loans

Home loan customers are taking out fixed rate loans more often than before. But many have waited too long to act, with lenders steadily increasing their fixed rates in recent weeks. Three year fixed rate home loans have increased by between 0.2 and 0.3 percentage points over recent weeks. Commonwealth Bank said fixed loans now accounted for 20 per cent of new lending, compared with around 11 per cent when interest rates are stable.