Homeloan Choices Bulletin
Vol 124 – March
1 in 5 property owners fix their mortgage
Over 20% of borrowers are choosing to fix their home loan, new data has revealed.
According to the latest national home loan approval data from Mortgage Choice, fixed rate home loans
accounted for 22.22% of all loans written in February, down slightly from 22.97% in January.
“While fixed rate demand was down slightly in comparison to last month, the fact that over 20% of borrowers
are choosing to fix their mortgage is still significant,” Mortgage Choice chief executive officer John Flavell
said.
“Of course, given that so many lenders have raised their interest rates over the past few weeks, I am not
surprised to see 1 in 5 borrowers opting for a fixed rate home loan.”
Looking ahead, Mr Flavell said he wouldn’t be surprised to see even more borrowers choosing to fix part or
all of their mortgage, as lenders continue to lift their interest rates out of cycle with the Reserve Bank of
Australia.
“In recent weeks, the Reserve Bank of Australia’s governor Philip Lowe has made it clear that future rate cuts
are now more unlikely than likely. With this in mind, it would appear the only way for rates to go is up,” he
said.
“As more lenders start to lift their rates, we may see more borrowers choosing to fix their mortgage in a bid
to avoid further rate hikes and provide themselves with some certainty around their regular mortgage
repayments.”
Across the country, fixed rate demand was highest in New South Wales, with this type of product accounting
for 24.17% of all home loans written throughout the month of February.
Queensland wasn’t far behind, with fixed rate demand accounting for 23.32% of all loans written within the
state.
Overall however, variable rate home loans – specifically ongoing discount mortgages – remained the most
popular product amongst borrowers.
Within Australia, ongoing discount home loans accounted for 44.34% of all mortgages written.
Mr Flavell said with interest rates continuing to sit at near record lows, borrowers should be able to secure a
good deal regardless of whether they choose a fixed or variable rate.
“At the end of the day, there is no right or wrong answer when it comes to selecting a home loan product, it
all comes down to personal preference,” he said.
For
archived
copies
of
the
Homeloan
Choices
bulletin,
http://www.mortgagechoice.com.au/about-us/homeloan-choices-newsletter.
NSW/ACT
please
refer
VIC/TAS
QLD
SA/NT
WA
82.14%
76.68%
79.19%
79.81%
12.49%
18.55%
21.95%
28.00%
10.71%
Standard Variable
7.49%
16.12%
7.12%
8.51%
9.97%
Ongoing Discount
50.24%
40.70%
38.44%
37.87%
53.39%
Line of Credit
1.85%
0.68%
2.05%
0.49%
2.03%
Introductory Rate
3.76%
6.09%
7.12%
4.32%
3.71%
24.17%
17.86%
23.32%
20.81%
20.19%
Variable
Basic Variable
Fixed
75.83%
to
For further information, or to arrange an interview, please contact:
Jessica Darnbrough
Mortgage Choice Corporate Affairs
(02) 8907 0472 / 0431 717 665
[email protected]
Brendan Wong
Mortgage Choice Corporate Affairs
(02) 8907 0502 / 0414 299 282
[email protected]
Important information
This article is for general information purposes only. It has been prepared without considering your objectives, financial
situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.
About Mortgage Choice
Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs.
Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by
offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.
Since that time, the company has grown and developed into a fully fledged financial services provider.
Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance,
deposit bonds, and risk and general insurance.
Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified
financial advisers.
Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It
listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited
holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.
Recent recognition: 2014 Australian Broking Awards Best Diversification Program; 2013, 2012, 2011 Australian Broking
Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility
Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011,
2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail
Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes
Asia-Pacific Best Under A Billion list.
Visit www.mortgagechoice.com.au or call customer service on 13 6678.