Login
ISCOVER
Demand for fixed-rate loans is at a six-year high, with almost one third of all loans written in November being fixed-rate products.
According to national home loan approval data from Mortgage Choice, fixed rates accounted for 30.6 per cent of all home loans in November, the highest percentage since March 2008, when 35 per cent of all new home loans were fixed rates.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
“Borrowers’ appetite for fixed-rate loans may have also been spurred on by competitive lender pricing,” said Mortgage Choice spokesperson Jessica Darnbrough.
“While we have seen a number of lenders continue to lift the interest on their suite of fixed-rate products this month, we can’t deny that fixed-rate pricing is still extremely competitive,” she said.
The figure was a stark increase on the same period last year when fixed-rate loans accounted for just 22.4 per cent of all home loans.
Fixed-rate demand increased in every state, with Queensland seeing the biggest jump. The volume of loans of this type surged by 5.23 per cent over the month of November in Queensland to sit at 37.1 per cent.
Borrowers in NSW weren’t far behind, with a 3.4 per cent rise to 33.9 per cent during November.
“Variable-rate home loans have also dropped to a long-time low, accounting for 69.44 per cent of all home loans written in November,” Ms Darnbrough said.
