It would appear that today's property buyers prefer to keep their options open with almost all borrowers preferring variable interest rate home loans over fixed.
According to sales data released by mortgage broking group Mortgage Choice this week demand for fixed rate home loans fell to just two per cent of all new loan approvals in July.
Interestingly, this trend comes as fixed rates reach their closest parity with variable interest rates in a long time.
According to Mortgage Choice there is now less than half a percentage point difference between the average basic variable rate and average three year fixed rate.
The group found standard variable rates were most popular over July, most likely because of their associated professional packages. ‘Pro-packs’ tend to offer interest rate discounts along with credit cards and other special features.
While there is no wrong or right choice when it comes to choosing between fixed and variable rate loans it’s worth noting that a fixed rate will offer you security, while a variable rate will offer you flexibility. What’s right for you will depend on your own individual circumstances.
