Home News Demand for fixed rate home loans falls further

Demand for fixed rate home loans falls further

Font size :
Fixed rate home loans accounted for only 13.88% of all loans written for the month of October, according to national home loan approval data from Mortgage Choice. This is a drop from last month’s 14.41%.

The last time demand for fixed rate products dropped to this level was back in June 2011, said John Flavell, Mortgage Choice CEO.

Flavell pointed out that fixed rate loan demand has steadily dropped over the last four months.

“We had expected to see a slight lift in demand for fixed rate products last month, after all of the majors decided to increase the interest rates on their suite of variable owner occupied and investor products,” he said.

“That said, while the majors all raised their rates in October, most of the higher rates won’t come into effect until November 20. When this happens, we might start to see more property buyers opting for fixed rate products.”

Similar to the previous month, demand for fixed rate home loans was at its weakest in Victoria, accounting for just 8.65% of all loans written for October.

South Australia and Queensland also posted weaker demand for fixed rate products, accounting for 12.36% and 12.76% respectively. On the other hand, New South Wales recorded strong demand at 17.31% of all loans written.

Variable rate loans continue to dominate, with ongoing discount products making up 52.80% of all loans written for the period.

“Even though all of the majors have recently lifted their variable interest rates, the mortgage market continues to be very competitive,” Flavell observed.

“Lenders are still actively competing for market share through low rates, which opens up a great opportunity for potential and existing home owners who are in the market for a sharp deal.”


 

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

Mortgage News and Articles

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks

The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

Broking industry wants to reform commission structures Broking industry wants to reform commission structures It argues that scrapping commissions altogether would push up the interest rates paid by consumers ... Read more

More mortgage news and articles

Sponsored Links

Friday, Jul 21, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords