More borrowers choosing to fix their home loan rate
Fixed-rate cuts have enticed more borrowers to take on fixed-rate home loans.
New research from Mortgage Choice shows fixed-rate demand has risen to nearly a third of all home loans. Fixed rates accounted for 31.05% of all loans written through the brokerage in August, up from 29.63% in July.
Mortgage Choice chief executive, John Flavell, said demand for fixed rates was at its highest since December 2013, when the loans accounted for 33.06% of all home loan products written through the company.
“The growing popularity of fixed-rate mortgages is not a surprise. Recently, we have seen a number of Australia’s lenders cut the interest rates charged on some of their 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,” Flavell said.
Queenslanders were most likely to opt for fixed-rate products, with fixed rates accounting for 35.48% of all home loans, up from 28.08% in July. South Australia and New South Wales were next, where fixed-rate loans accounted for 34.40% and 33.66% of all loans, respectively.