subscribe to our newsletter
Fixed rate demand hits eight-month high

Fixed rate demand hits eight-month high

Record-low rates are driving an increasing number of borrowers to fix their mortgage.

According to national home loan approval data from Mortgage Choice, fixed rate home loans accounted for 26.64 per cent of all loans written in October – up from 25.45 per cent the month before.

Mortgage Choice spokesperson Jessica Darnbrough said with further cuts to the official cash rate in the coming months unlikely, borrowers seem intent on fixing their mortgage while rates are low.

“No doubt borrowers’ appetite for fixed rate loans has also been provoked by the ongoing competition for business among Australia’s lenders who continue to offer sharp pricing, significant mortgage discounts and other borrower incentives,” Ms Darnbrough said.

“It is pleasing to see that borrowers are taking advantage of the current home loan market by actively responding to lender incentives and making informed home loan choices,” she said.

Overall, fixed rates were most popular in Queensland, accounting for 31.25 per cent of all loans written in this state in October – 3.51 per cent up on the month prior.

Despite a 1.19 per cent drop in demand month-on-month, variable rate home loans continue to prove most popular with borrowers overall, accounting for 73.36 per cent of all loans approved in October.

 

Fixed rate demand hits eight-month high
mortgagebusiness

Latest News

The chairman of the Australian Securities and Investments Commission has said that the corporate regulator will move forward with more “co...

The Senate Standing Committee on Economics is set to review short-term credit providers, payday lenders, consumer lease providers, “buy no...

Weaknesses in the government’s proposed open banking implementation plan could spark a “scaremongering” campaign, a fintech has warned...

FROM THE WEB

podcast

LATEST PODCAST: Emotional intelligence and its role in managerial structure

Is enough being done to ensure responsible lending?