According to Mortgage Choice chief executive John Flavell in an article in the Courier Mail (http://www.couriermail.com.au/realestate/news/brisbane-qld/queenslanders-have-the-highest-level-of-fixed-rate-mortgages-in-the-country-new-data-shows/news-story/aca99503ef0fe8bc12be04f49700fc06), Queenslanders are not leaving anything to chance when it comes to their mortgages, with new data showing the state has the highest level of fixed rate borrowing in the country.
Latest national home loan approval data from Mortgage Choice found increasing numbers of Queenslanders were opting for fixed rates at a time when nationally the levels were falling.
Mortgage Choice chief executive John Flavell said the percentage of all loans written in October that were fixed was 17.4 per cent – which though higher than the previous month (16.72 per cent) was significantly lower than the 12 month average (20.83 per cent).
“Meanwhile, Queensland is currently enjoying quite strong fixed rate demand by historical standards,” he said. “As per the data, fixed rate mortgages accounted for 23.80 per cent of all loans written within the state last month – slightly higher than the 19.89 per cent recorded the month prior.”
New South Wales also seeing strong fixed rate demand (19.62 per cent of all loans written), he said.
But in Victoria, fixed rate demand had hit a historic low (5.88 per cent) as the vast majority of borrowers opted for variable rates.
“If we look at the historical data we can see that the level of fixed rate demand in Victoria is the lowest it has ever been.”
Mr Flavell said with the Reserve Bank of Australia “clearly indicating that rate hikes are a long way off” he was not surprised to see more people opt for variable rate mortgages (nationally).
“Borrowers are savvy, they understand that interest rates are more likely to fall than rise over the short to medium term. As such, they feel comfortable opting for a variable over a fixed-rate mortgage.”
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