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Variable rate home loans are still the preferred option among borrowers, the Bankwest / Mortgage & Finance Association of Australia (MFAA) Home Finance Index revealed yesterday.
According to the Index, only 21.4 per cent of respondents said they would chose a fixed rate home loan, while 38.4 per cent said they favoured variable rates when borrowing or refinancing.
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Just over 28 per cent said they would opt for a mix of fixed and variable.
Head of mortgages at Bankwest, Paul Vivian, said purchasers were using a variety of strategies to manage their mortgages.
“The significant changes in economic conditions have brought about a shift in the way consumers view mortgages,” Mr Vivian said.
“Almost twice as many people still favour variable loans over fixed, but the gap has narrowed since late last year.”
In November 2007, 32.4 per cent of respondents favoured fixed loans, compared to one fifth of respondents that favour it at present.
