Decreasing Concern of Aussies towards Fixed Rate Loans
It has been noted that Aussies now are showing less concern in fixed rate loans due to the current volatility of the home loan market.
The data collected from mortgage choice shows that there were 17.4% fixed rate loans approved by them, whereas in July they were 18.5%, means there is a dip of 1.1%.
Mortgage Choice chief executive John Flavell said, “Generally speaking, when the market is volatile and lenders are moving their rates – as they are doing now – fixed rate demand increases, as borrowers look for security and consistency around their mortgage repayments”.
Although in recent weeks, the lenders have dropped fixed rate loans to a much lower value, but still Aussie are more attracted towards variable rate loans. It has also been noted that the fixed rate demand was weak in Victoria, but in WA & SA, it was fine.
He further added, “With rates sitting at historically low levels, it is fair to say that regardless of whether a borrower chooses a fixed rate or variable rate home loan, they are going to secure a competitive rate”.
As the lending rules are getting sterner to meet the APRA’s 10% guidelines, thus the borrowers must be aware of all the policies, before applying for a loan – according to Mr Flavell.
News Source: https://au.finance.yahoo.com/news/fixed-rate-demand-drops-lows-012109227.html