Home loan borrowers are increasingly moving towards fixed rate loans, with nearly 20 per cent of loans written in December being those with a fixed interest rate.
The data comes from Mortgage Choice and they say the December figures were up from the previous month which recorded 17.39 per cent.
Mortgage Choice chief executive John Flavell spoke to Australian Broker and said that demand for fixed rates from borrowers had increased for two months in a row.
“This spike in demand for fixed rates comes just months after the majority of Australia’s lenders lifted the interest rates across their suite of variable rate home loans,” he said.
“A lot of mortgage holders are now acutely aware that Australia’s banks can and will lift their variable rates as they see fit.”
“As such, it isn’t surprising to see an increasing number of Australians opting for the security of a fixed rate home loan.”
Victoria actually recorded the lowest figures for the uptake of fixed rate loans in the country, recording 10.65 per cent in December, which compares to New South Wales which recorded 25.35 per cent, the country’s highest figure. M
r Flavell told Australian Broker to expect the number of fixed rate home loans to continue rising.
“Moving forward, and depending on what the Reserve Bank does with the official cash rate next month, I wouldn’t be surprised to see an increasing number of Australians looking to fix part or all of their mortgage,” he said.