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By: Staff Reporter
Demand for fixed rate home loans fell to just 2 per cent of all home loan approvals in July despite their increased parity to standard variable rates, Mortgage Choice sales figures show.
According to Mortgage Choice spokesperson Kristy Sheppard new borrowers are simply taking their chances with variable interest rates.
“This is despite less than half a percentage point difference between our average basic variable rate and the three year fixed rate, which converts to less than $100 per month on a $300,000 loan,” she said.
“With fixed rate home loans at a mere two per cent of all of our July home loan approvals it has now been more than two years since this loan type has poked its head above 10 per cent of new approvals for any month.”
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