October 03, 2014
Fixed rate loan demand has hit a four month high in September with one in four borrowers electing to fix their mortgage.
Mortgage Choice data shows fixed rates accounted for 25.45% of all home loans approved, up from 24.19% in August.
This increase in fixed rate preference during September is not unexpected, with many lenders cutting their fixed rates in July and August. We've seen two year fixed rates fall to as low as 4.49 per cent and three year rates down to 4.69 per cent.
While fixed rate demand has increased, it is important to also highlight the majority of borrowers continue to select a variable rate product with rates as low as 4.65 per cent.
We are also seeing many borrowers selecting to split their home loan, effectively getting the security of a fixed rate with the flexibility of a variable rate.
If you would like more information on which type of loan is right for you, please call us on 03 9432 6070 or click on the contact us tab at the top of this page.