Basic home loans are in demand as homeowners opt for the cheaper option. According to the AAP basic home loans were more popular than standard loans in January.
Mortgage Choice senior corporate affairs manager Kristy Sheppard added that many Australians are backing away from extras such as credit cards or savings accounts linked to the loan.
"Basic loan demand overtook that for standard loans in January and continues increasing to levels not seen in years, reaching 49 per cent of all loan approvals," she added.
Home loan interest rates have fallen more than 3 per cent since September, as the Reserve bank continued to cut official rates, eventually slashing them by a total of 4 per cent.
With the boost to the first homebuyer grant encouraging sales at the lower end of the market, all homeowners are looking to make their mortgage as affordable as possible.
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