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An increasing number of Australians are fixing their home loan rates under the fear that interest rates have bottomed out and will now start to rise, according to Mortgage Choice.
The broker group said demand for their fixed rate loan hit its highest level since July 2008 at 8 per cent of all loan approvals in June 2009.
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However, variable rate loans remained very much the favourite at 86 per cent of all loan approvals, according to the company.
Basic variable loans were the most popular type of loan in Australia, at 47 per cent of all loan approvals.
Demand for standard variable loans, many of which are professional packages (where eligible customers with a loan worth over $150,000 can receive discounts on the interest rate along with other professional package features), rose to 40 per cent.
“Despite rising interest rates on fixed term home loans and talk of variable rates staying low for many months yet, demand for fixing has increased over three consecutive months now,” Mortgage Choice senior corporate affairs manager Kristy Sheppard said.
