Property investors and home buyers are lapping up lenders’ special offers and discount home loan products, sales figures from Mortgage Choice have revealed.
During April, every state saw a rise in demand for discount loans with the products account for a high of 30 per cent of all new Mortgage Choice loan approvals nationally.
This was the strongest appetite seen since the broking group began differentiating ongoing discount loans from others in its data reporting six months ago and a five per cent jump compared to March.
“Consumer conservatism is seeing Australians taking advantage of discounts and bargain shopping wherever they can. This includes their home loan,” said Mortgage Choice spokesperson Kristy Sheppard.
“Ongoing discount and fixed rate home loans were the only product types to experience an increase in demand nationally last month,” Ms Sheppard said.
Demand for standard variable rates dropped to 28 per cent of new loan approvals in April from 30 per cent in March and basic variable home loans fell to 22 per cent from 25 per cent.
Demand for line of credit home loans, which are often popular with investors, dropped one percentage point to 4 per cent of approvals while introductory rate loans remained relatively steady at 4 per cent as well.