news

Fixed rate demand soars to 5-year high

By Staff Reporter

The demand for fixed interest rate home loans continued to soar in April, reaching a five-year high, according to Mortgage Choice.

The national home loan approval figures show that fixed rate loans accounted for 28.04 per cent of all new home loans approved in April, an increase from 27.58 per cent from the previous month, and 18.41 per cent in February. 

This was the highest level of interest in fixed rate loans recorded since March 2008, which reached 34.87 per cent. 

Mortgage Choice spokesperson, Belinda Williamson, said this result was not unexpected. 

“With a number of lenders still offering highly competitive fixed rate loans, it is not surprising that borrowers have been taking advantage of the deals available and that the national percentage of fixed rate loan approvals has increased,” she said. 

“What came as a surprise was that a majority of states – Queensland, South Australia and Western Australia – saw demand for fixed rate loans fall, albeit slightly. With no obvious economic factors instigating the trend, it may be a sign of growing consumer confidence.”

New South Wales saw an increased demand from 7.94 per cent to 32.45 per cent, and in Victoria saw the proportion of fixed rate loans rise by 1.28 per cent to 21.24 per cent. 

However, fixed rates lost favour in other states: Queensland dropped by 6.53 per cent to 30.41 per cent, South Australia fell by 4.95 per cent to 27.31 per cent, and Western Australia dipped by 0.55 per cent to 23.70 per cent. 

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%
Fixed rate demand soars to 5-year high
SPI logo