Fixed rate demand on the rise
In the face of last month’s predictions about interest rate rises, the take up of fixed rate home loans has reached a two-year high in October, according to the mortgage broker Mortgage Choice.
The demand for fixed rate home loans more than doubled over October to 7.7 per cent, with Queensland experiencing the most take up at 9.2 per cent, and South Australia the least at 4 per cent.
“The interest rate on these loans has now risen and we’re yet to see any new fixed term products that match the original offers in terms of both pricing and quality, so fixed rate demand may drop a little this month,” said Mortgage Choice spokesperson, Kristy Sheppard.
“Another factor would be that the average three and five-year fixed rates remain higher that the average standard variable and basic variable rates,” Sheppard said.
However, Sheppard said the expected drop might be offset by a probable increase in borrowers’ predilection towards fixed rates due to November’s cash rate rise and the subsequent lender rate rises.
Recommended for you
Multiple industry organisations have shared their thoughts on AFCA’s proposed rules amendment, supporting the idea of firms being named publicly when they fail to comply with determinations.
Channel Capital has appointed a head of investment oversight who joins from 14 years at asset consulting firm JANA Investment Advisers.
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
