The latest national home loan approval data from Mortgage Choice shows fixed rate home loans are only occupying 20.55% of the mortgage market share in the last month. This figure is the deepest fall fixed rate home loans ever encountered, following the 21% dip in February 2013.
“Of course, given that many analysts are now predicting that the Reserve Bank of Australia will cut the cash rate in the not-too-distant future, it is unsurprising to see demand for fixed rate home loans decreasing and an increasing number of borrowers opting for a variable rate home loan,” spokesperson Jessica Darnbrough said.
Variable rates with ongoing discounts are the most popular home loans in the market today, as they accounts for 44.36% of all loans written in Australia.
Overall, the majority of homebuyers in Australia prefer variable rates, as they have now reached a share of 84.78% of all loans written. Specifically, Western Australia and South Australia are particularly fond of variable rates, with 91.96% and 80.92%, respectively.
New South Wales recorded the lowest demand for variable rates, with 76.38% of all loans written in January.
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