The demand for fixed rate home loans has hit a four month high this September, with one in four Aussie
home buyers opting to fix.
According to the latest Homeloan Choices data from Mortgage Choice, fixed rates accounted for 25.45% of all home loans written during September. This is up from 24.19% in the previous month.
Across the country, fixed rates were most popular in New South Wales, where this type of product accounted for 30.75% of all loans written last month – up from 25.30% in August.
Despite the growing demand for fixed rate products in some states, a spokesperson for Mortgage Choice, Jessica Darnbrough said variable rate home loans continue to dominate the market, with this type of product accounting for 74.55% of all loans written across the country in September.
“Once again, ongoing discounted rates were the most popular of all the variable rate products, with this type of home loan accounting for 38.01 per cent of all loans written in September,” she said.
“Even though we saw a lot of lenders trim the interest on their suite of fixed rate products recently, it is clear the majority of borrowers are happy to take their chances on a variable rate mortgage.
“Variable home loan rates are still sitting at historical lows, and as such, it isn’t surprising to see that this type of loan is popular with borrowers. That said, with fixed rates also sitting at historical lows, borrowers can rest assured that regardless of the product they choose, they should be able to snag a very competitive rate.”