Westpac forecasts higher interests rates: Borrowers warned to brace for higher repayments
Monthly repayments could soon cost borrowers a lot more cash if Westpac’s predictions for rate rises do come to fruit...
Demand for fixed rate home loans has reached its highest level since June 2008 according to national mortgage broker Mortgage Choice.
The popularity of fixed term products rose in every state in November to 11 per cent of all approvals the brokerage revealed yesterday.
“Australia’s hunger for fixed interest rates is well and truly becoming a louder rumble, with demand lifting from a trough or 0.88 per cent of home loan approvals in January to 10.9 per cent in November,” Mortgage Choice spokesperson Kristy Sheppard said.
The 29 month high was a considerable increase on the 7.7 per cent recorded in October, indicating rising borrower caution in the face of higher interest rates and rising living costs.
Standard variable products rose to 49.3 per cent of all approvals – the most popular product choice – while demand for basic variable loans was at 36.1 per cent of all approvals.