September 03, 2015
New data from Mortgage Choice has revealed that demand for fixed rate home loans has fallen to its lowest level in almost three years.
Fixed rate loans accounted for 17.41% of all loans written during August - down 1.05% from July.
Considering the current volatility of the investment home loan market, it is some what surprising that borrowers are increasingly favouring variable rates.
In recent weeks we have seen many of Australia's lenders increasing interest rates on their investment home loan products, as they respond to the Australian Prudential Regulation Authority's directive to limit their investment lending growth to 10% each year.
Fixed rate demand was lowest in Victoria, with only 11.66% of loans written in August being fixed. Meanwhile New South Wales had the high fixed rate take up at 20.58%.
Over the past few months, the home loan market has become incredibly complex with all lenders making different changes to their lending policies and interest rates.
Now more than ever, it is important to get professional home loan advice.
To find out more and how these changes make affect you, call us on 03 9432 6070 or click on 'contact us online' tab as the top of this page.