When you purchase an item such as a motor vehicle, appliance or furniture on finance, the hire purchase contract sets out the interest rate for the life of the loan, this does not alter during the course of the loan.
When you purchase a home or property and borrow money for a mortgage, which in effect is hire purchase but referred to as a mortgage loan, it is at the mercy of the Reserve Bank interest rate decisions.
Statistics prove that when people purchase a property, it is most often based on their current financial position at the time, which the payments are affordable.
The Reserve bank interest rate rise increase the monthly mortgage payment, often placing a family in financial hardship, this has led to more people losing their home. Each year more families are are being evicted from their homes due to increased interest rates.
This is a national problem, one which the government and the banks are responsible for creating.
The banks and government should be held accountable for allowing this unfair practice to occur and continue.

Actually gypsy its not so much the banks as the non-bank lenders. Banks are still quite conservative about who they'll lend to and how much. They also do their affordability calculations at least 2% higher than the current rate. When I first applied for a home loan and the bank rate was 6%, I was assessed at 8%, so now that it is 8%, I can still afford my payments.

HP's have a fixed rate for two reasons. (1) they are a short-term loan, whereas mortgages are for now up to 50 years. Short-term fixing is less risk commercially to the lender, so they are prepared to fix. (2) Rates are higher to start with - again lowering the risk to the lender. Its simply about commerciality.

You can fix your home loan rate if you want to....

Having set interest rates for a Bank and Chaired an ABA Committee advising Bernie Fraser, I note that what is dangerous economically is for there to be a period of high intrest rates followed by low low rates. [I am not really an Oliver] Here, the Banks need to pay high rates in billions of dollars of fixed deposits and cannot readily align to the RBA's indicated lending rates. If this happens in the US, sub-prime lending will be a minor event in comparision.

As with RAMS mortgages, loans can be securitised, wherein say a liquid bank will pay say $500 million for a $1 billion dollar unproductive loan portfolio.

If the Banks find themselves in a lquidity squeeze like c. 1975, and can't raise funds from customers or each other these banks will/could purchase Commercial Certificates of Deposit from the Money Market at high interest to protect their immediate position. If that happens, interest rates could hit double digits.

Unfortunately I have no control in fixing my mortgage for the following reasons;
My ex spouce, who is also on the mortgage papers, left me for an internet lover. In the 2 1/2 years she has been gone she has not made any contributions to the mortgage or any other joint debts.
Suncorp Metway Bank, we have the mortgage with, needs both my ex and my signatures to refix the mortgage.
In July of 2006 I applied for a debt consolidation loan and was approved but it could not go ahead as she refused to sign unless I gave her half of the money approved to consolidate the joint debts.

gypsy,

If the purpose of the loan is consolidation of debt it must used for that purpose. Talk with a Chamber Magistrate [free]. You need to establish a record of addressing the situation and your spouse avoiding it. If you are separated, your spouse's assets [car?] can be attached, I think. Make your next request to sign the consolidation papers through the Public Notary.

Good luck. Don't forget the Chamber Magistrate.

Thanks for the advice Oliver. I will look into it and hopefully will get somewhere this time.