Anticipation of further rate reductions saw borrower take up of fixed home loans fall to just three per cent in October, according to sales data from Mortgage Choice.
Mortgage Choice senior corporate affairs manager Kristy Sheppard said “the Australian mortgage landscape has really experienced an about-face on fixed loans.
“In October 2007 they were loan of choice for 22 per cent of borrowers but in October 2008 this figure stood at less than three per cent.”
The Mortgage Choice data corresponds with figures from the ABS and aggregation group AFG whose latest data reported fixed rate sales of just 3.3 per cent and 4.5 per cent respectively.
Despite lenders continuing to reduce rates on fixed products Ms Sheppard said borrowers were cautious to embrace them at present because of the anticipation of further rate cuts.
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