Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Fixed-rate demand hits two-year low

An increasing number of borrowers are choosing to take out a variable-rate mortgage, as demand for fixed-rate loans hits a two-year low.

According to data from Mortgage Choice, fixed-rate home loans accounted for just 20.6 per cent of all loans written in January – down from 22.3 per cent in December last year.

Variable rates accounted for 79.5 per cent of all loans written last month – up from 77.7 per cent in December.

Advertisement
Advertisement

Ongoing discount loans were the most popular variable-rate product type, accounting for 44.4 per cent of all variable-rate loans, while standard and basic variable-rate loans accounted for 16.9 per cent and 13.8 per cent respectively.

Line of credit loans accounted for 2.9 per cent of all variable-rate loans, while introductory-rate loans accounted for 1.5 per cent.

Mortgage Choice spokesperson Jessica Darnbrough said the last time fixed rates accounted for less than 21 per cent of all loans written was back in February 2013.

“Of course, given that many analysts are now predicting that the Reserve Bank of Australia will cut the cash rate [again] in the not-too-distant future, it is unsurprising to see demand for fixed-rate home loans decreasing and an increasing number of borrowers opting for a variable-rate home loan,” she said.

“At the end of the day, there is no right or wrong when it comes to choosing between a fixed and variable-rate home loan. It all comes down to personal preference and what option you feel most comfortable with.”

 

Fixed-rate demand hits two-year low
mortgagebusiness

Latest News

According to data analysis agency GlobalData, one in four ADIs could exit the market within the next five years, as unemployment levels rise...

The economic consequences of the coronavirus pandemic have prompted more non-bank lenders to make changes to their credit policies, which in...

LaTrobe Financial has announced it anticipates a “strong and sharp” rebound for the housing market, as well as for employment conditions...

FROM THE WEB
podcast

LATEST PODCAST: The rush to save small businesses

Do you think Australia will move to quantitative easing this year?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

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