April 10, 2014
According to the latest home loan approval figures from Mortgage Choice in South Australia, variable rates accounted for 77.52% of all home loans written in March – up from 72.36% the month before.
The lift in demand for variable rate products is largely due to the recent stability in interest rates.
With the Reserve Bank indicating that rates could stay on hold for the foreseeable future, borrowers are understandably, becoming more comfortable taking out a variable rate mortgage.
Moving forward, I expect demand for this type of product will continue to grow”
But while demand for variable rate products increases, fixed rates still account for between 1 to 2 of every 5 loans written in SA which is almost 10% higher than the 10 year average.
“Regardless of what type of product you opt for, you can guarantee the mortgage will have a very sharp interest rate.
Australia’s banks and lenders are competing for your business at the moment through aggressive borrower incentives and home loan pricing. Now more than ever, a Mortgage Broker can save you time and money. For more information, contact Mellissa Burt on 0403 382 327 or click here to book an appointment.