Brokers suggesting fixed rate loans may want to take note of their location, as demand shows wide discrepancies from state to state.
New research from Mortgage Choice has noted considerable variation from state to state in the uptake of fixed rate loans. While fixed rate demand saw an overall rise in February, accounting for 18.41% of all the company's approvals, Mortgage Choice said there was a nearly 12% discrepancy between the highest and lowest levels of demand across the country.
Company spokesperson Belinda Williamson said Queensland saw the greatest demand for fixed rates, at 23.05%.
"Following the spate of natural disasters the sunshine state has endured over the past few years, in comparison to other states it isn’t surprising to see more borrowers in Queensland choose the peace of mind offered by fixed rate loans," Williamson said.
But Victorians proved the most likely to take a punt on future RBA
moves, with fixed rate demand in the state at only 11.08%.
"This may suggest that Victorians are the least conservative state and are tipping further variable rate cuts to come," she said.
NSW saw the second-highest demand for fixing, with the loans accounting for 19.94% of Mortgage Choice approvals. SA and NT followed closely at 18.16%, while WA borrowers showed a greater preference for variable rates, with fixed rate products at 15.74% of approvals.