Fixed-rate home loans could soon stage a resurgence, according to the head of one non-major lender.
Westpac’s announcement last week that it will raise interest rates
on investor and owner-occupier loans by 0.2% from mid-November prompted predictions that other lenders will follow suit
and ME general manager Lino Pelaccia believes consumers will turn to fixed-rate loans to protect themselves from any such increases.
“We’re expecting demand for fixed rates to jump as people seek certainty from the growing speculation around what variable rates will do in the foreseeable future,” Pelaccia told Your Investment Property Magazine’s sister publication, Australian Broker
“We’re seeing more borrowers starting to consider locking in at least some their home loans with a fixed rate,” he said.
Recent figures have shown that fixed-rate loans have recently fallen out of favour with many borrowers.
Earlier this month
, Mortgage Choice revealed that fixed-rate loans accounted for only 14.41% of loans written through September, down from 17.41% in August.
Mortgage Choice CEO John Flavell said that was the lowest demand for fixed-rate home loans since August 2011.
Those figures were then reinforced last week when mortgage broking firm AFG released statistics showing the proportion of fixed-rate loans it had processed during the September quarter fell to a three-year low at just 11.3%.
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 :
Get help with your investment property
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 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 and appointment is free.
We value your privacy and treat all your information seriously - you can check out