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Fixed rate loans jump: Loan approval data

By webmaster
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Almost double the number of investors and buyers sought fixed rate loans in November 2011 than in November 2010, according to Mortgage Choice.

National loan approval data saw fixed rate loans at their highest level since April 2008, making up 20 per cent of all new loan approvals in November.

This is a four per cent increase on the six-month average and a jump from 11 per cent in November 2011.

“When comparing our November loan approval data to one year ago, it is evident fixed rate loans have become far more popular,” said Mortgage Choice spokesperson Belinda Williamson.

“Snapping up relatively low fixed rates and attractive variable rate discounts, borrowers are certainly making the most of lenders’ pricing war as they battle each other for business,” Ms Williamson said.

Ongoing discount rate home loans saw a slight increase of two per cent from 43 per cent in November, ahead of the 12 month average of 33 per cent.

Demand for basic variable loans dropped by two per cent in November, down from 16 per cent in October.

Slight decreases were also seen in credit loans and introductory rate loans.

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