Record low interest rates are encouraging an increasing number of people to fix their mortgage, causing demand for this loan type to hit an eight month high.
According to national home loan approval data from Mortgage Choice, fixed rate home loans accounted for 26.64% of all loans written in October – up from 25.45% recorded the month before.
Further cuts to the official cash rate is unlikely in the coming months and borrowers are keen to fix their mortgage while rates are low. There’s no doubt the appetite for fixed rate loans has also been provoked by the ongoing competition for business among Australia’s lenders who continue to offer sharp pricing, significant mortgage discounts and other borrower incentives.
There’s also some great deals available at the moment and borrowers can potentially save a lot of money if they fix their home loan with their current lender or switch to another lender for a better deal.
Despite a 1.19% drop in demand month on month, variable rate home loans still continue to prove most popular with borrowers overall, accounting for 73.36% of all loans approved in October.
Regardless of whether borrowers choose a fixed or variable rate mortgage, now is the perfect opportunity secure a great deal. If you are interested in finding the right fixed rate home loan for you please contact my team and I at Mortgage Choice Blaxland and Penrith on 4739 9749 or visit www.mortgagechoice.com.au/rob.lees