Demand for fixed rate home loans grew last month, with this type of product accounting for almost one in every four mortgages written.
Fixed rates accounted for 24.19 per cent of all home loans written last month – up from 23.82 per cent recorded the month before.
It wasn’t surprising to see demand for fixed rates grow last month given that so many of Australia’s lenders recently trimmed the interest on their suite of fixed rate home loans.
At the end of July, many of Australia’s lenders slashed the interest off their suite of fixed rate products – most notably their five year home loans. Whenever lenders cut their rates, there tends to be a lift in demand for that type of product a few months later.
As such, it wasn’t surprising to see fixed rates starting to gain greater traction with borrowers in August. Moving forward, we expect fixed rate demand to climb slightly higher again throughout September, as more borrowers look to take advantage of the historically low fixed rates that Australia’s lenders are currently offering.
Regardless of which home loan product Australians opted for, all borrowers would have secured an incredibly competitive rate, given that interest rates continue to hover around historical lows.
Not only are rates low, but Australia’s lenders have proven they are hungry for business and they are willing to cut the interest on their suite of products, offer significant discounts or other incentives in order to win business.
Do you know what interest rate you are paying? Call Sally on 9565 4880 if you think it is time to spring clean your mortgage.