July 01, 2014
Borrowers are increasingly selecting home loans with a variable rate as competition between lenders continues and interest rates remain stable.
Mortgage Choice's latest home loan approval figures for June show that variable rate home loans accounted for 75.34 per cent of all home loans, an increase of 1.21 per cent on the previous month's figures.
This result shouldn't be surprising as lenders continue to offer special variable rate discounts and cash back offers to lure customers.
Adding to borrowers variable rate preference, the Reserve Bank of Australia has made it clear they are happy with the current setting of monetary policy, with rates predicted to remain on hold for some time.
In Victoria, demand for fixed rates fell by a huge 10.44 per cent for the month, raising the variable rate preference to 82.36 per cent, the highest in the country.
If you haven't reviewed your home loan for a few years, now is a great time to take advantage of these variable rate discounts.
For a free, no obligation review of your home loan, call us today on 03 9432 6070 or click on the 'contact us' tab at the top of this page.