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More than 60 per cent of new fixed rate home loans are expected to rise in the coming week, research from the financial services website, RateCity, has found.
According to the research, most fixed home loans are now up for review since they were last re-adjusted in June 2009.
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RateCity’s CEO Damian Smith said consumers shouldn't panic over the expected rate rise, but instead use the opportunity to shop around.
"If you've just applied for a home loan and are waiting for settlement or are rolling over a loan from refinancing you may be caught with a higher fixed rate,” Mr Smith said.
Last week Westpac, St George and Bankwest adjusted their rates by up to 0.45 per cent, while the Commonwealth Bank of Australia lifted rates on their fixed mortgages by up to 0.6 per cent.
However, Mr Smith said there is a positive aspect to fixed rate rises.
"Confidence is returning to the market, property prices appear to be stable and the Reserve Bank has kept the cash rate unchanged at 3 percent for the past six months, which means lenders are becoming more comfortable and beginning to advertise more aggressively," he said.
