Australian borrowers increased their strong preference for fixed rate loans with 33 per cent of all approvals in this category up from 29 per cent the previous month, the latest Mortgage Choice franchise national housing loan approval data for November 2006 has revealed.
This is the first time in recent history that fixed loan demand has remained at around or above 30 per cent for 12 successive months, according to the financial services franchise.
Mortgage Choice National Corporate Affairs Manager, Warren O’Rourke said, “It appears that with affordability an issue, many borrowers are prepared to secure some sort of immunity from the impact of further rate rises by opting to take out fixed rate loans. With three interest rates this year, the continued historically high level of demand for fixed rates is understandable. Especially now fixed rate loans have improved flexibility when it comes to the features available.
“Interestingly, the Mortgage Choice Consumer Sentiment Survey results released early December revealed that 86.3 per cent of respondents believed interest rates will rise in the first quarter of 2007.”
Standard variable home loans represented 32 per cent of all loans approvals in Australia, down slightly from 33 per cent the previous month.
There was a decrease in demand for basic variable home loans during November with 23 per cent of approvals for this category down from 28 per cent the month prior.
9-Jan-2007