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ISCOVER
Staff Reporter
Fixed rate demand has doubled in the past six months, new research has revealed.
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According to statistics from Loan Market Group, fixed rate interest now represents around 30 per cent of the brokerage’s total enquiries.
Loan Market chief operating officer Dean Rushton said the increase in demand could be attributed to the fact that lenders have become increasingly competitive on fixed rates.
Mr Rushton said lenders have been forecasting the RBA to lower the official rate from the current level of 4.75 per cent in response to the volatile international economic climate and sluggish domestic consumer confidence.
“Despite the prospect of a long overdue cash rate cut, consumers have been taking a close look at these highly attractive fixed rate packages on offer,” Mr Rushton said.
Mr Rushton said some fixed rate offerings were as much as 1.5 per cent below the bank’s standard variable rate on the market.
“Each week we are seeing a new lender roll out a highly competitive and lower fixed rate package,” he said.
“We have seen one lender go as low as 6.34 per cent and there have been indications from other lenders that more discounts are coming.
