According to Mortgage Choice data, demand for fixed rate home loans increased in May, accounting for 22.47% of total home loans.
The market situation played a significant role in the recent results, said Mortgage Choice Executive Director Susan Mitchell. "Over the past 12 months, fixed rates accounted for 21.81% of all loans taken out. If you look at what's happening in the market, the increase in demand is not surprising, "she said. "The lenders in our panel have aggressively reduced fixed rate home loan products, which has been successful in encouraging more borrowers to commit to a fixed term. With rates as low as 3.49% p.a., it is not surprising to see a growing proportion of borrowers choosing to get hurt. "
Queensland had the highest fixed rate demand, with 26% of borrowers choosing the type of home loan. Western Australia followed, with 25% of borrowers choosing to set the interest rate on their home loan. Victoria, meanwhile, recorded the lowest percentage of borrowers (15%) having chosen the type of product.
The data revealed that the most popular housing loan products were discounted floating rate loans, followed by basic variable rates.
Mitchell said it was a good time to settle some or all of the housing loans, because fixed-rate pricing currently offers good value for long-term standards. She reminded borrowers, however, that they needed to assess their needs before deciding on the type of loan to use.
"Even though the announcement of low interest rates will definitely sting the interest of borrowers, it is just as important that borrowers remember that the interest rate n & # 39; It is not the only component of a home loan and they must look for the right loan product and features that are suitable for their loan. needs in the short and long term, "she said. "It pays to be proactive about the interest rate of your home loan because complacency could prevent you from potentially saving thousands of dollars each year. I advise borrowers to review their home loan at least once a year to make sure their current loan is still meeting their needs. After all, the number of rate cuts observed in recent weeks could mean that there are more suitable and affordable loan products on the market than those currently available. "
Top suburbs:
Toowong
,
Eagle Valley
,
alexandra hills
,
Tiwi
,
Melton
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