Borrowers are loving fixed rate loans

first_imgOne in five borrowers are opting for fixed-rate home loansWe may be crucifying them in the State of Origin, but in the less dramatic competition around fixed rate home loans, the maroons are running a close second to the blues.Home loan approvals data compiled by mortgage broker Mortgage Choice reveals 23.3 per cent of all Queensland loans written in February were for a fixed interest rate.More from newsMould, age, not enough to stop 17 bidders fighting for this home2 hours agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor8 hours agoAcross the country, fixed rate demand was highest in New South Wales, where they accounted for 24.2 per cent of all home loans written in the month.Mortgage Choice said the ration has translated across borders with one in five loans around Australia now being fixed rate.Mortgage Choice chief executive officer, John Flavell, said the results are significant.“Of course, given that so many lenders have raised their interest rates over the past few weeks, I am not surprised to see one in five borrowers opting for a fixed rate home loan.”Mr Flavell said the trend to fixed rates should continue after the Reserve Bank of Australia’s governor, Philip Lowe, said future rate cuts were unlikely.“As more lenders start to lift their rates, we may see more borrowers choosing to fix their mortgage in a bid to avoid further rate hikes and provide themselves with some certainty around their regular mortgage repayments,” Mr Flavell said.last_img

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