Many Australians seeking home loans are leaning towards fixed rate mortgage products, according to an industry expert.
Kristy Sheppard, company spokesperson for Mortgage Choice, noted that 45 percent of the home loans purchased in September fell into this category.
She stressed that most consumers are reluctant to choose products with variable interest rates, “particularly if they feel they’ve snagged a bargain”.
“Australia has almost reached the point where one in two new borrowers is seeking the combined benefit of affordability and flexibility,” said Sheppard.
The figures released by Mortgage Choice highlight the decline in demand for basic variable rate home loans, dropping from 16 percent in August to 15 percent in September.
Meanwhile, the Heritage Building Society announced last month that it had cut interest rates on its fixed rate home loans, reducing its five-year rate to 6.69 percent.
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