Home News Fixed rates surge to a 9-month high

Fixed rates surge to a 9-month high

Font size :

Speculations that the current wave of interest rate cuts have come to an end prompted a large number of property owners to lock in their mortgages.

The latest report from mortgage broker Australian Finance Group showed sales of fixed rate home loans jumped to 6.8% in April from 3.7% in the month of March and 2.5% in February.

The surge comes as some banks have already started to raise the interest rates on their fixed mortgages. In late April, CBA added 0.44% to 6.19% to its 3-year fixed rate. Westpac lifted by 0.40% to 5.79% while ING increased it by 0.20% to 5.89%.

First homebuyers remained the driving force in the market, accounting for 27.7% of all new mortgages sold in the same period. NSW recorded the highest proportion of first homebuyer loan sales at 33.8% while Victoria notched up 27.3%.

However, while the figures for April remain positive, Kevin Matthews, director with AFG said he expects the first homebuyer numbers to trend strongly downwards in coming months. "Lenders have recently amended credit policy meaning that many potential first homebuyers will no longer qualify for loans without evidence of genuine savings. The vast majority of first homebuyer loans fit this category meaning the effectiveness of the first home owner grant is diminished."

Property investors in Queensland were the most confident, snapping up 27.1% of all loans sold by AFG in the same month. NSW investors were also active, taking 26.9% of all the loans while WA racked up 25.6%.

For an in depth analysis of why you should consider a fixed rate mortgage now, check out the latest issue of Your Investment Property magazine on sale now.

 

 

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

Young Sydneysiders are less keen on homeownership Young Sydneysiders are less keen on homeownership

Many would rather ‘rentvest’ than be tied down to a costly owner-occupier mortgage, according to new studies Read more

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate The sprawling redevelopment aims to boost the supply of affordable housing in Sydney ... Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More mortgage news and articles

Sponsored Links

Tuesday, Aug 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • 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