April 09, 2014
Borrowers are increasingly selecting variable rate home loans as the threat of interest rates rising remains subdued.
Mortgage Choice’s home loan data for March shows that 76.06% of all home loans approved were for variable rate products – up from 73.92% in February.
At its April board meeting, the Reserve Bank of Australia left rates on hold for the eighth consecutive month and suggested that the most prudent course of action for the Australian economy was a prolonged period of interest rate stability.
Most economists are also predicting a period of rate stability however many also say that the next move is more likely to be up than down.
Of all the home loan products on offer, ongoing discount rates continue to be the most popular with 43.71% of all home loans approved during March.
These loans are popular because of the ongoing discounts they provide to the standard variable rate, plus offering a range of flexible features.
Whilst demand for fixed rates may be falling, they still account for almost one in four loans written – almost 10 per cent higher than the 10 year historical average.
Rest assured whatever option you choose, you can guarantee your mortgage will have a very sharp interest rate as lenders are competing strongly for business at present.
To find out what home loan options are available and what is best for your situation, call us today on 9432 6070 or click on the ‘contact us’ tab at the top of this page.