Aussies are attracted towards Fixed Rates Loans to Lock in Cheap Financing
As after the May rate cut, the interest rates are at historically low levels, so the Australians are more focused towards the fixed rate loans. As a result the fixed rate loans are getting a boost.
Latest data revealed from Mortgage Choice showed that the fixed rate home loans increased from 17.91 per cent to 18.17 per cent in the month of May. “The demand for fixed rate products hasn’t been this high since the beginning of the year”, said John Flavell, chief executive at Mortgage Choice. He said, “Since the Reserve Bank of Australia cut the official cash rate to the new historical low of 2% at its May Board meeting, speculation has started to mount that we are now at the bottom of the rate cycle”.
According to him, as the rate cut are on hold for June month to 2 per cent, there are more chances that the demand for fixed rate loans will gain a steep rise. Because, no. of Aussies want to get the advantage of low rates, because the rates are no longer expected to fall further, or they can also get a rise too.
Also the data showed that the fixed rate demand in April was the lowest one in last two years, but again it gets boosted up in the month of May and will rise further.
Data collected from finder.com.au also showed that more than half of borrowers (56%) are concerned about rising interest rates – 33% more borrowers than last year.
News Source: http://www.brokernews.com.au/news/breaking-news/fixed-rate-demand-climbs-as-consumers-lock-in-low-rates-201239.aspx