news

Demand for fixed rate home loans reaches high

By Staff Reporter

Demand for fixed rate home loans reached a six-month high in October as borrowers locked in low interest rates for an average of three years, according to the latest loan approval figures from Mortgage Choice.

In October, 22 per cent of all new home loans taken out by new borrowers were for fixed rates, which is just above the 12-month average of 21 per cent.
 
Mortgage Choice spokesperson Belinda Williamson said it comes as no surprise that borrowers are taking advantage of the good fixed rate loan offers, following speculation last month of fewer rate cuts to come this year.

"By securing their interest rate they are also locking in peace of mind over the next few years,” Ms Williamson said.
 
“Despite the increased demand for fixed rate loans, lenders are still discounting their rates to attract new customers. Over the past week, we have seen seven lenders on our lender panel drop their fixed rate loans across a range of fixed rate terms.
 
“Further analysis shows that by far the most popular fixed rate loan term is three years, at 74 per cent of new loans taken out in October. This is followed by two-year fixed rate term loans at 16 per cent of new loans, and five and one year-fixed rate terms at 5 per cent of approved loans, respectively,” she said.
 
October also saw a considerable uplift in the preference for ongoing discount rates loans, reaching 40 per cent of all new loans approved. This follows two consecutive monthly drops in demand in August and September.
 

Demand for fixed rate home loans reaches high
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%