Aussie Home Loans says mortgage enquiries have jumped 30 per cent since the Reserve Bank last pulled on its monetary policy interest rate lever by cutting rates to a record low of 1.5 per cent.
According to the lender, the rate cut saw a sharp spike in loan enquiries and it has kept going right through September.
Well-known Aussie Home Loans chief executive officer spoke in Broker News about the effect on loan demand from the latest RBA interest rate cut.
“The RBA’s move to cut rates has certainly stimulated activity in the home loan market, and more borrowers are reconsidering their options since lenders did not pass on the full rate cut,” he said.
“With fixed rates now at all-time lows I urge borrowers to seriously consider fixing if they intend to stay in their properties for another five years or more.”
Indeed, Aussie Home Loans has been fielding most enquiries about its four and five year fixed rate home loan product. The company has recently cut the rate for that, and its two and three year product, to less than 4 per cent.
Mr Symond recommended borrowers go through a broker or risk paying more in the face of the increasingly complicated mortgage market in Australia.
“The rate cut should not cause borrowers to load up on their mortgages, but precipitate a move to take advantage of the rate cuts and squeeze their lender for a better deal through the use of a mortgage broker.”