Lenders "hungry for business" are attempting to woo borrowers with significant discounts, a mortgage franchise has claimed.
New figures from Mortgage Choice
show the demand for variable rate products has climbed 0.62% in the lead-up to today's RBA
meeting. With the Reserve Bank likely to keep rates on hold, borrowers have driven variable rate demand to 74.13%.
Company spokesperson Jessica Darnbrough said the rise in variable rate popularity was also indicative of increasing competition among lenders.
“Australia’s lenders are hungry for business and they have been offering some sensational variable rate discounts in a bid to attract borrowers and grow their market share,” she said.
Darnbrough said lenders had a "real appetite for mortgages", and had offered significant discounts to their standard variable rates.
“We have seen some lenders offering discounts of up to 1.3% and even 1.4% off the standard variable rate. We haven’t seen this level of discounting for some time, so it is no surprise to see the popularity of variable rate products on the rise.”
Fixed rate demand, meanwhile, fell from 26.49% in April to 25.87% in May. Demand for fixed rate products is now well off its peak of 33.06% in December of last year.