Aussies remain optimistic that the Reserve Bank of Australia (RBA) will continue its cash rate cuts, figures from Mortgage Choice claim.
Consequently, more borrowers are now opting for variable rates - as opposed to fixed - as they expect even lower rates from the RBA at some point this year. This was particularly so in March where demand for fixed-rate loans reached a two-year low.
Mortgage Choice said the demand started to slip four months ago, thanks to forecasts of rate hikes to provide balance in the country’s substandard economic data.
Spokeswoman Jessica Darnbrough also confirmed that the demand dropped over the past year from its all-time highs. March saw only 18% of loans were under fixed-rate terms.
“Since December 2013, fixed-rate demand has dropped approximately 15%, falling from the historical high of 33.06%,” she was quoted saying by The Australian
Darnbrough added she does not see any change in the preferences of Aussies any time soon (favouring variable rates) as many are anticipating a 2% cut in April or May.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker