Fixed rate demand at four month high: Mortgage Choice

Fixed rate demand at four month high: Mortgage Choice
Fixed rate demand at four month high: Mortgage Choice

Variable rates remain Australian borrowers’ favourite option, however fixed rates have been growing to a now four month high over September, according to Mortgage Choice’s latest Homeloan Choices data.

Fixed rates in September accounted for 25.45% of loans written, up from 24.19% in August.

New South Wales home borrowers were keenest for fixed rates, with 30.75% opting for fixed products, up from 25.30% in August. Meanwhile, Victoria saw an uptick to 18.10% from a previous 16.70% result.

Jessica Darnbrough, spokesperson for Mortgage Choice, said that the lift was largely expected with lenders pushing fixed rates aggressively.

“At the end of July and the beginning of August, many of Australia’s lenders actively cut the interest on their suite of fixed rate products, which encouraged more borrowers to opt for a fixed rate mortgage,” Darnbrough said.

“It usually takes a month or two for us to see any increase in demand for a particular product flow through the data, but we are definitely starting to see that now.”

She noted that despite lenders trimming interest on fixed rate products, the majority are still happy to “take their chances on a variable rate mortgage.”

“Variable home loan rates are still sitting at historical lows, and as such, it isn’t surprising to see that this type of loan is popular with borrowers. That said, with fixed rates also sitting at historical lows, borrowers can rest assured that regardless of the product they choose, they should be able to snag a very competitive rate,” she said.

Bankwest was recently the latest lender to cut their fixed rates to record lows.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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Interest Rates

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