news

Investors flood to safety of fixed rates

By webmaster

Demand for fixed rate home loans increased dramatically in March, hitting levels not seen since the GFC.

According to recent figures from the Australian Bureau of Statistics (ABS), fixed rate loans as a percentage of all dwellings financed reached 14.5 per cent – up from 11.9 per cent in February.

Finance Brokers Association of Australia (FBAA) president Peter White said that the figures reflected the poor sentiment among borrowers.

“Fixed rate loans as a percentage of all mortgages is usually around 10 per cent. These ABS numbers show uncertainty and are a reflection of consumer sentiment,” he said.

“There’s political and financial uncertainty which is making borrowers more cautious. And who can blame them, with the Reserve Bank cutting the cash rate and banks not passing it on?

“There’s a lot of distrust, people are thinking, ‘I can’t trust the bank to pass on the full rate cut, I’m going to hedge my bets and lock in’."

Investors flood to safety of fixed rates
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%