Borrowers seem increasingly wary of possible rate rises, with one major mortgage broker network showing demand for fixed rate loans increased over January.
According to figures from Mortgage Choice, fixed rate home loans accounted for 23.62% of all home loans written during January, up from the 19.44% they accounted for in December.
The level of demand for fixed rate loans is the highest Mortgage Choice has seen since November 2014, with chief executive John Flavell predicting demand will continue to increase in the coming months.
“Home loan interest rates are incredibly volatile at the moment. Consumers are unsure whether or not Australia’s lending institutions are going to raise or cut their home loan interest rates," Flavell said.
“With that in mind, it is not surprising to see a growing number of borrowers looking for some safety and security around their home loan repayments in the form of a fixed rate mortgage," he said.
“Over the coming few months, I wouldn’t be surprised to see demand for fixed rates continue to increase slightly.”
Queensland was home to the highest rate of demand for fixed rate loans over January, with 31.12% of mortgages written over the month being fixed rate loans.
New South Wales and Western Australia were next, with fixed rate demand accounting for 24.07% and 23.15% respectively.
Victoria and South Australia were home to the lowest demand levels, with fixed rate loans making up 13.09% and 20.03% of all January mortgages in the two respective states.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
st kilda west
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out