One in three Australians opting for fixed home loans: Mortgage Choice

One in three Australians opting for fixed home loans: Mortgage Choice
One in three Australians opting for fixed home loans: Mortgage Choice

Nearly one in three Australians have fixed rate mortgages, according to the latest data from broker Mortgage Choice.

Fixed rate home loans accounted for 31.05% of all loans written throughout the month of August, up from 29.63% in July.

“Fixed rate demand is now at its highest level since December 2013, when fixed rate home loans accounted for 33.06% of all loans written,” Mortgage Choice chief executive officer John Flavell said. 

He added that the growing popularity of fixed rate mortgages was not a surprise because a number of lenders have recently been cutting their interest rates on some fixed rate products. 

“As a result, fixed rate home loans are now very competitively priced, which has made them more attractive to homeowners who are looking for repayment security.” 

Across the country, fixed rate demand was strongest in Queensland, with this type of home loan accounting for 35.48% of all loans written throughout the month of August, up from 28.08% last month. 

South Australia and New South Wales followed, with fixed rate loans accounting for 34.40% and 33.66% respectively.  

Variable rate home loans, specifically ongoing discount products, remained the most popular product with borrowers across the country. 

In Australia, ongoing discount home loans accounted for 40.7% of all mortgages written in the month of August. 

Looking ahead, Flavell said it remained to be seen what would happen with fixed rate demand. 

“We are now in the spring selling season and we are starting to see a lot of rate competition between Australia’s lenders. 

“Over the past couple of weeks, we have seen lenders trim the interest rates across their fixed and variable home loan products, which is great news for anyone looking to buy a property, refinance or upgrade. 

 

Tags: 
Mortgage Brokers Fixed Rates

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