Fixed rate home loan demand hit a six-month high in October, as borrowers seek to lock in 'peace of mind' over coming years.
Mortgage Choice data shows that 22% of all new home loans taken out by new borrowers were for fixed rates, which is just above the 12-month average of 21%.
Spokesperson Belinda Williamson said the uptick in fixed rate applications was expected.
“Following speculation last month of fewer rate cuts to come this year, and the latest CPI data hinting at less rate activity, it comes as no surprise that borrowers are taking advantage of the good fixed rate loan offers available," Williamson said.
However, lenders are still discounting their rates to attract new customers, with seven lenders on Mortgage Choice's panel dropping their fixed rate loans during the past week.
“Further analysis shows that by far the most popular fixed rate loan term is three years, at 74% of new loans taken out in October," Williamson said.
"This is followed by two-year fixed rate term loans at 16% of new loans, and five and one year-fixed rate terms at 5% of approved loans, respectively.”
Following two consecutive monthly drops in demand, October also saw an uplift in ongoing discount rates loans, reaching 40% of all new loans approved at Mortgage Choice.
If you would like to compare different loan products based on comparison rates and features, you can simply jump on to the Your Mortgage website Compare Home Loans section, or check out the Mortgage Calculator.