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Mortgage Choice has recorded a decrease in fixed-rate applications but expects this to rise in the wake of recent rate cuts.
The group reported that 23.95 per cent of its loans in July were for fixed rates – down from 24.66 per cent in June.
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Spokesperson Jessica Darnbrough said fixed-rate activity was likely to rise in August as borrowers took advantage of the historically low fixed rates now offered by various lenders.
Commonwealth Bank started the round of rate cuts in late July, when it cut its five-year rate to 4.99 per cent.
Fixed-rate reductions were then announced by a range of other lenders, including AMP Bank, Bank of Melbourne, Citibank, CUA, Homeloans, Macquarie, NAB, Suncorp Bank and Westpac.
Meanwhile, Mortgage Choice chief executive Michael Russell has voiced his support for Senator Nick Xenophon’s plan to allow first home buyers to use their superannuation to pay their deposit.
“We have long advocated the need for the government to introduce a scheme whereby first home buyers can elect to access their superannuation for a house deposit, thereby reducing the need for LMI and allowing these buyers to jump onto the property ladder sooner rather than later,” he said.
“Provided the right measures are put in place to ensure the scheme is used for the right reasons, I believe an initiative that allows first home buyers to access their super to fund their home deposit would help to considerably improve housing affordability.”
[Related: Mortgage Choice hopes for record volumes]
