Powered by MOMENTUM MEDIA
subscribe to our newsletter

Low interest rates drive surge in fixed rate home loans

Fresh figures have revealed that the current low interest rate environment continues to drive demand for fixed rate home loans, which accounted for 20.32 per cent of all loans written in August.

According to Mortgage Choice’s latest national home loan approval data, fixed rate home loans accounted for 20.32 per cent of all loans written throughout the month of August, up from 20.24 per cent the month prior.

Mortgage Choice chief executive officer John Flavell said the lift in fixed rate demand is “largely unsurprising”.

Mr Flavell pointed to the Reserve Bank’s decision to cut the official cost of borrowing to the record low of 1.50 per cent in August.

“Given the RBA held the cash rate at 1.50 per cent in September, we might start to see more interest in fixed rate home loans as people start to question if now is a good time to lock in a rate,” he said.

Advertisement
Advertisement

“If the RBA does cut the cash rate again, it is clear that Australia’s lenders are unlikely to pass on the full rate reduction.”

Mortgage Choice’s home loan approval data found that across the country, fixed rate demand was highest in Western Australia, accounting for 25.78 per cent of all home loans written in August.

Queensland and NSW followed closely, with fixed rates accounting for 24.72 per cent and 22.91 per cent respectively of all loans written.

Demand for fixed rate home loans was lowest in Victoria, accounting for only 9.06 per cent of all loans written.

Overall, Mortgage Choice’s figures revealed that variable rates were the most popular among borrowers, with ongoing discount rates accounting for 45.14 per cent of all loans written.

PROMOTED CONTENT


[Related: Bank slashes rates by up to 50 basis points]

Low interest rates drive surge in fixed rate home loans
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

Latest News

A foreign bank has had its Australian banking licence revoked by APRA after it pulled out of the Australian market. ...

The average number of days properties spend on the realestate.com.au site fell to a record low in May, with records broken in many states a...

The big four bank has hired the former boss of AUSTRAC as the regulator has launched an investigation against NAB for potential anti-money...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.