Homeloan Choices Bulletin Vol 97 - December Fixed rate demand continues to climb An increasing number of borrowers are opting to fix their mortgage, with fixed rates hitting a nine month high in November. According to the latest national home loan approval data from Mortgage Choice, fixed rate home loans accounted for 26.98% of all loans written in November – up from 26.64% recorded the month before. Mortgage Choice David Moore said while rates are currently sitting at all time lows, an increasing number of borrowers are looking for some certainty around their repayments. “A growing number of borrowers are beginning to realise that while rates are low, they can’t stay this way forever. And as such, they are looking to fix their mortgage now while rates are sitting at historically low levels,” he said. “Furthermore, a lot of lenders slashed the interest on their suite of fixed rate products at the end of July and we are finally starting to see the result of those rate movements coming through in our data.” Across Australia, fixed rates were most popular in New South Wales, with this type of product accounting for more than one third (34.13%) of all loans written last month. Queensland wasn’t far behind, with fixed rates accounting for 28.65% of all loans written, while in South Australia, Victoria and Western Australia fixed rates made up 20.23%, 19.77% and 16.94% respectively. But while the popularity of fixed rates continues to grow month on month, variable rates with an ongoing discount remain the favourite choice for borrowers. Last month, ongoing discount variable rates accounted for 40.43% of all loans written, up from 37.43% the month before. “With variable rates so low at the moment, it is no surprise to see the majority of borrowers opting for this type of product,” “That said, fixed rates are also very competitive which is why we are seeing an increasing number of borrowers opting for the safety of a fixed rate product.” David Moore - Liverpool Mob: 0412 405 792 - W: 02 9731 1817- Email: [email protected] mortgagechoice.au/david.moore - https://facebook/david.mooreMC NSW/ACT VIC/TAS QLD SA/NT WA Variable 65.87% 80.23% 73.15% 79.77% 83.06% Basic Variable 8.43% 12.30% 8.95% 20.59% 12.57% Standard Variable 14.28% 29.98% 19.84% 6.78% 15.42% Ongoing Discount 40.29% 35.09% 39.60% 45.71% 50.51% Line of Credit 2.07% 2.09% 2.54% 4.17% 1.89% Introductory Rate 0.79% 0.76% 0.42% 2.52% 2.66% Fixed 34.13% 19.77% 28.65% 20.23% 16.94% Important information This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances. About Mortgage Choice Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs. Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional. Since that time, the company has grown and developed into a fully fledged financial services provider. Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance. Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified financial advisers. Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA). Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC. Recent recognition: 2014 Australian Broking Awards Best Diversification Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list. Visit mortgagechoice.au or call customer service on 13 6678.
Posted on: Mon, 08 Dec 2014 08:04:32 +0000
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