A growing number of Australian borrowers are now switching to fixed-rate mortgages in order to avoid the effect of sudden interest rate hikes, according to a recent survey.
Newest figures released by the Australian Finance Group showed that 25 percent of borrowers who refinanced their mortgages with the company switched to a fixed-rate package in March, compared to only 6.5 percent over the same period last year. This represents a record high since recession hit the country.
Meanwhile, an online survey by mortgage broker firm Loan Market indicated that out of 764 respondents, 46 percent plans to switch to fixed-rate mortgages, while 14 percent said they would do so for only some of their mortgages.
“With attractive fixed products still available and the European debt crisis remaining unresolved, some consumers may seek the comfort of locking in their mortgage rate for a few years,” said Paul Smith, a spokesman of Loan Market.
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