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ISCOVER
Staff Reporter
New home loan borrowers are lapping up the various discounted products currently on offer.
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According to new research by Mortgage Choice, 30 per cent of all borrowers sought a discounted product in April.
This is the strongest appetite seen since the broker began differentiating ongoing discount loans from others in its data reporting.
Company spokesperson Kristy Sheppard said ongoing discount rate home loans were now the most sought after product by Mortgage Choice customers.
“Ongoing discount and fixed rate home loans were the only product types to experience an increase in demand nationally last month. This was the case in almost every state, with the exceptions being Victoria and South Australia,” Ms Sheppard said.
“Consumer conservatism is seeing Australians taking advantage of discounts and bargain shopping wherever they can. This includes their home loan.”
The popularity of fixed rate home loans also increased from 10 per cent to 12 per cent.
The demand for standard variable rates dropped to 28 per cent of new loan approvals in April from 30 per cent in March and basic variable home loans fell to 22 per cent from 25 per cent.
The popularity of line of credit home loans, which are often popular with investors, dropped one percentage point to 4 per cent of approvals while introductory rate loans remained relatively steady at 4 per cent.
