Powered by MOMENTUM MEDIA
subscribe to our newsletter

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.

Advertisement
Advertisement

PROMOTED CONTENT


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

Citi is to exit its consumer business, including mortgages, loans, retail banking and credit card operations, in Australia and 12 other ...

The major bank’s CEO has reiterated that responsible lending changes could simplify the lender’s processes and improve mortgage approv...

The non-major has reported growth in housing lending as well as a rise in home loan settlements via the broker channel. ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Tackling the home deposit challenge

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

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