Ongoing low interest rates are pushing up demand for fixed rate home loans.
Last month, just over 20 per cent of all home loans written were fixed rate.
Mortgage Choice’s John Flavell told The Adviser he is not surprised.
“Given the RBA held the cash rate at 1.50 per cent in September, we might start to see more interest in fixed rate home loans as people start to question if now is a good time to lock in a rate,” he said.
“If the RBA does cut the cash rate again, it is clear that Australia’s lenders are unlikely to pass on the full rate reduction.”
Victoria actually had the lowest demand for fixed rate loans in the country. The figures from Mortgage Choice’s home loan approval data had Western Australia as the state with the keenest demand for fixed loans, with just over 25 per cent of their loans in August being fixed rate.
Victoria was well below that, with just 9.06 per cent of August home loans written being fixed rate.