REINSW  

SEARCH

 Click to Search
   MEMBER LOGIN Username    Password  Remember me Click to Login Forgotten password?  About REINSW  Contact Us   
:: Latest news
Click to print page
bullet
Fixed rate home load demand steadies
Released 11 February 2011



New data from independently-owned mortgage broker Mortgage Choice, shows 15.3% of the home loans approved for its customers in January had a fixed interest rate.   

This compares to 15.2% in December, 11.2% in November, 7.7% in October and 3.7% in September.

Uptake increased for the fourth consecutive month in the majority of states, by an average of 2.2 percentage points, but dropped in QLD and WA, by 2.9 and 2.8 percentage points respectively.

Mortgage Choice company spokesperson Kristy Sheppard said, “Australians’ appetite for fixed rate home loans has risen consistently over the past six months, but that pace slowed right down in January.”

“One has to question whether the demand for this more conservative loan type has steadied now it looks likely that the next cash rate rise has been pushed back to mid-year or later.

“Of all the mortgage types, ongoing discount loans - where the interest rate is discounted over the entire loan term usually in return for an annual fee - experienced the biggest increase in demand. They accounted for 25.3 percent of our January approvals, having risen 8.4 percentage points in the last two months.”

Notwithstanding this trend standard variable rate home loans continue to be the favourite, at 30.7% of approvals, followed by the ongoing discount loan category, which overtook basic variable loans at 23.6% of approvals to hit second spot.

Demand for line of credit home loans, often popular with investors, dropped a little to 4.8% of approvals from 5.4% the month prior while introductory rate home loans accounted for only 0.2%.