 Fixed rate no longer wanted
Demand for variable home loans reached a peak in February, with 92% of all home loan approvals in this category.
Recent figures from Mortgage Choice show that fixed loans are out, and variable is in. Mortgage Choice senior corporate affairs manager, Kristy Sheppard says that customers are being cautious by opting for variable mortgages.
"With variable loans hitting a record 92% of approvals, it appears Australians are confident of interest rates remaining at historically low levels for the short term at least," she said.
Of the 92 per cent, standard variable home loans made up 42% and basic variable home loans made up 49% in February.
Mortgage Choice also reported the demand for fixed rate loans had dipped to just 2.5% from its 38% peak in November 2007. With official rate cuts of 400 basis points since September and home loan rates falling in a similar fashion, consumers are choosing not to fix their mortgage.
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