Demand for fixed rate home loans increased dramatically in March, hitting levels not seen since the GFC.
According to recent figures from the Australian Bureau of Statistics (ABS), fixed rate loans as a percentage of all dwellings financed reached 14.5 per cent – up from 11.9 per cent in February.
Finance Brokers Association of Australia (FBAA) president Peter White said that the figures reflected the poor sentiment among borrowers.
“Fixed rate loans as a percentage of all mortgages is usually around 10 per cent. These ABS numbers show uncertainty and are a reflection of consumer sentiment,” he said.
“There’s political and financial uncertainty which is making borrowers more cautious. And who can blame them, with the Reserve Bank cutting the cash rate and banks not passing it on?
“There’s a lot of distrust, people are thinking, ‘I can’t trust the bank to pass on the full rate cut, I’m going to hedge my bets and lock in’."