Fixed loans losing popularity

by BN09 Sep 2009

The popularity of fixed rate loans dropped slightly to just under 7%, according to new data.

Demand for fixed products stood at less than 10% of all loan approvals for 14 months, said Mortgage Choice, which attributed the change in consumer sentiment to the large pricing difference between fixed and variable rates.

Variable loans however, remained relatively steady at 86%, only two percentage points below the 12-month average.

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Fixed rate home loans to rise - Sixty percent of new fixed rate home loans in Australia are expected to rise in the next according to comparison website, RateCity.