 A limited number of lenders are now offering fixed-rate mortgages whose interest rates start with a ‘4’, although variable rates continue to have a ‘5’ (at least) in front of them. So are fixed rates about to make a comeback and is now the right time for you to fix your loan?
That depends on your personal circumstances and what you anticipate will happen in the future. Here’s what to consider if you’re thinking about fixing:
 The annual inflation rate in April was 2.4%, based on the latest data from the Australian Bureau of Statistics. That marked the ninth consecutive month headline inflation had been within the RBA's target range of 2–3%. More importantly, the ‘trimmed mean’ inflation rate – which the Reserve Bank of Australia (RBA) considers more reliable as it removes volatile price movements – was 2.8%, marking its fifth consecutive month within the target range. This potentially opens the door for the RBA to make at least one more interest rate cut this year.  The minutes from the RBA’s May 20 monetary policy meeting show that the board believes inflationary pressures have eased significantly. It also noted that “significant and unexpectedly adverse developments in the global economy” could slow domestic growth, further easing inflationary pressure.
That said, the RBA cautioned that inflation risks remain. The scheduled end of federal energy subsidies is expected to increase power prices, while a tight labour market continues to drive strong wage growth. Both factors may exert upward pressure on inflation. As a result, while many economists forecast rates will fall further in 2025, it remains uncertain.  Australia's median property price rose 1.1% during the three months to April, to reach a new peak of $825,349, according to Cotality. Every capital city recorded growth during that three-month period, ranging from 0.6% in Canberra to 3.4% in Darwin.  Cotality's analysis also revealed:
 Now that Anthony Albanese has started his second term as prime minister, there has been renewed focus on the housing policies the Australian Labor Party (ALP) took to the election.
From 2026, the ALP promised to make the Home Guarantee Scheme available to all first home buyers; currently, it is limited to 50,000 places per year and includes income caps. “There will be no caps on how many people can apply and no limit on how much you or your partner can earn. For first home buyers, you’ll be able to buy an eligible property anywhere in Australia, with a deposit as low as 5%,” according to the ALP. To increase the supply of housing – and thereby put downward pressure on prices – the ALP promised to invest $10 billion to build up to 100,000 homes reserved only for first home buyers. “Funding will support enabling infrastructure, land purchases or construction to get these homes built – near work and family, only for first home buyers,” Labor said. Labor also promised to invest an additional:
 Market commentators are expecting a big jump in refinancing activity in the coming weeks, given that numerous borrowers switched home loans earlier in the year following the previous cash rate cut, in February, by the Reserve Bank of Australia.
Equifax, a credit reporting agency, has reported that the number of mortgage applications in the first quarter of 2025 was 5.2% higher than the same quarter the year before. Refinancers played a major role in that increase, with refinancing accounting for 37% of mortgage demand in the month of March. 3 key things to consider before refinancing your home loan:
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