More home owners choose fixed low interest rates
An increasing number of people taking out home loans are choosing fixed low interest rates, according to figures published by Australian Finance Group (AFG).
According to the AFG Mortgage Index, the proportion of fixed rates bounced up from an all-time low of 3.2 per cent in November to 5.7 per cent in December.
The strong demand from first home buyers and home owners refinancing their property contributed to stronger than expected mortgage sales in December. There was an 11 per cent increase in the volume of loans compared to December 2007.
The general manager, sales and operations at AFG, Mark Hewitt, said: “It would be premature to call a turnaround in the mortgage market based on a single month’s performance, but December figures were an encouraging sign. There is a traditional softening in mortgages at this time of year as people enjoy the festive season, but mortgage sales held up more strongly than expected.”
Hewitt said the number of people taking up fixed rate loans would increase as first home buyers take advantage of financial incentives.
Recommended for you
Two law firms have highlighted licensees’ responsibility to ensure they have sufficient cyber security measures in light of the enforcement action against Fortnum Private Wealth.
A former director has pleaded guilty to providing financial product advice without holding an AFSL which saw almost $2 million transferred to him.
Commonwealth Private Limited, a subsidiary of Commonwealth Bank of Australia, has launched a wholesale offering with the help of JPMAM.
Shaw and Partners’ new national head of private wealth believes the biggest challenge for financial advisers right now is being able to deliver efficient advice delivery amid a complex regulatory environment and growing investment universe.
