New data shows 1 in 4 home loans are fixed

Demand for fixed rate home loans has hit its highest level in more than 12 months, new data has revealed.

According to the latest national home loan approval data from Mortgage Choice, fixed rate home loans accounted for 23.62% of all loans written throughout the month of January – up from 19.44% recorded the month prior.

Mortgage Choice chief executive officer John Flavell said the jump in demand meant almost one in every four home loans written was now fixed.

“Home loan interest rates are incredibly volatile at the moment. Consumers are unsure whether or not Australia’s lending institutions are going to raise or cut their home loan interest rates,” he said.

“With that in mind, it is not surprising to see a growing number of borrowers looking for some safety and security around their home loan repayments in the form of a fixed rate mortgage.”

Mr Flavell said the last time demand for fixed rate home loans was this high was back in November 2014 when there was a similar level of complexity and confusion around interest rates.

“Over the coming few months, I wouldn’t be surprised to see demand for fixed rates continue to increase slightly.”

Queensland recorded the strongest demand for fixed rate products, with this type of loan accounting for 31.12% of all home loans written throughout January.

New South Wales and Western Australia were next, with fixed rate demand accounting for 24.07% and 23.15% respectively.

At the other end of the spectrum, fixed rate demand was lowest in Victoria and South Australia, with this type of product making up 13.09% and 20.03% of all loans written in each state respectively.

But while demand for fixed rate products across Australia grew over the month of January, variable rate home loans – specifically ongoing discount mortgages – remained most popular with borrowers.

Across Australia, 49.53% of borrowers took out an ongoing discount variable rate home loan – down from 52.07% the month prior.

For more information, please contact Rhye Livinngstone on 0459 958 893 or visit https://www.mortgagechoice.com.au/rhye.livingstone

 

 

NSW/ACT

VIC/TAS

QLD

SA/NT

WA

 Variable

75.93%

86.91%

68.88%

79.97%

76.85%

Basic Variable

10.57%

21.99%

14.24%

23.22%

16.39%

Standard Variable

7.96%

10.39%

10.46%

11.34%

13.46%

Ongoing Discount

55.84%

53.14%

43.62%

44.23%

42.07%

Line of Credit

1.41%

1.31%

0.56%

1.18%

4.93%

Introductory Rate

0.15%

0.08%

0.00%

0.00%

0.00%

 Fixed

24.07%

13.09%

31.12%

20.03%

23.15%

                     

 

For further information, photos of the new logo, or to arrange an interview, please contact:

 

Name: Rhye Livingstone

Mortgage Choice Frankston

Phone number: 0459 958 893

Email address: rhye.livingstone@mortgagechoice.com.au

 

Important information

This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.

 

About Mortgage Choice

Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs.

Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.

Since that time, the company has grown and developed into a fully fledged financial services provider.

Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance.

Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified financial advisers.

Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).

Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.

Recent recognition: 2014 Australian Broking Awards Best Diversification Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education;   No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.

Visit www.mortgagechoice.com.au or call customer service on 13 77 62.

Posted in: Interest rates

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