According to the latest Mortgage Choice data, the popularity of variable loans peaked at 92% in February - the highest level since the franchise group began recording its loan data in January 2003.
Moreover, the mortgage broker reported that the split between standard and basic variable home loans was 43% to 49% respectively.
Mortgage Choice senior corporate affairs manager, Kristy Sheppard, attributed the results to 'consumer conservatism,' saying the phenomenon was likely due to borrowers opting for lower costs over broader home loan features.
Yet, since standard variable loan demand had reached 43% for the first time since October, she added that perhaps the tide was indeed beginning to turn.
"With variable loans hitting a record 92% of approvals, it appears Australians are confident of interest rates remaining at historically low levels for the short term at least," she said.
In addition, Mortgage Choice reported the demand for fixed rate loans had dipped to just 2.5% from its 38% peak in November 2007, and that the uptake of line-of-credit loans - generally popular with property investors - had fallen off in February to 5%.
Mortgage Choice found conditions for home buyers to be better now than 'in a long time', channeling an influx of potential purchasers into the property arena.
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