May 01, 2014
Demand for fixed rates has once again increased.
Mortgage Choice’s approval figures for April indicate that fixed rate accounted for 26.49% of all home loans written.
This is an increase from 24.22% in March and bucks the recent trend of falling fixed rate demand since peaking at 33.06% in December.
So why have fixed rates increased in popularity during April?
There appears to be two main reasons why borrowers are increasingly selecting a fixed rate.
This year competition between lenders has been fierce with a number of lenders recently cutting their fixed rates.
Also we’ve recently seen a number of lenders increase the flexibility of their fixed rate products, allowing additional repayments, redraw and offset facilities.
Official interest rates
Whilst official interest rates are stable at the moment with no immediate indication from the Reserve Bank of Australia that they will be making any change, leading economists and market commentators are increasingly predicting that the next rate move will most likely be up.
Talk of rates going up in the future makes fixing an attractive option for many borrowers. Choosing fixed or variable is an important decision but there many other factors to consider when choosing a home loan that is right for you.
So what should you do?
Speak with a professional mortgage broker like us, who can assess your needs and provide you with the right advice so you can make an informed decision.
For more information, call us today on 03 9432 6070, visit our offices at Suite 4, Level 1/86 Grimshaw Street Greensborough or click on the ‘contact us’ button at the top of this page.