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Fixed-rate demand hits 12-month high

James Mitchell 4 minute read

Demand for fixed-rate home loans has hit its highest level in more than a year, new data has revealed.

According to the latest national home loan approval data from Mortgage Choice, fixed-rate home loans accounted for 23.62 per cent of all loans written throughout January – up from 19.44 per cent recorded the month prior.

Mortgage Choice chief executive officer John Flavell said the jump in demand meant almost one in every four home loans written was now fixed.

“Home loan interest rates are incredibly volatile at the moment. Consumers are unsure whether or not Australia’s lending institutions are going to raise or cut their home loan interest rates,” he said.


“With that in mind, it is not surprising to see a growing number of borrowers looking for some safety and security around their home loan repayments in the form of a fixed-rate mortgage.”

Mr Flavell said the last time demand for fixed-rate home loans was this high was back in November 2014 when there was a similar level of complexity and confusion around interest rates.

“Over the coming few months, I wouldn’t be surprised to see demand for fixed rates continue to increase slightly.”

Queensland recorded the strongest demand for fixed-rate products, with this type of loan accounting for 31.12 per cent of all home loans written throughout January.

New South Wales and Western Australia were next, with fixed-rate demand accounting for 24.07 per cent and 23.15 per cent respectively.


At the other end of the spectrum, fixed-rate demand was lowest in Victoria and South Australia, with this type of product making up 13.09 per cent and 20.03 per cent of all loans written in each state respectively.

But while demand for fixed-rate products across Australia grew over the month of January, variable rate home loans – specifically ongoing discount mortgages – remained most popular with borrowers.

Across Australia, 49.53 per cent of borrowers took out an ongoing discount variable rate home loan – down from 52.07 per cent the month prior.

[Related: Lender removes investor curbs as demand eases]

Fixed-rate demand hits 12-month high
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James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.



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