Borrowers like ongoing discount mortgages

07/12/2011

Mortgage Choice data for November shows demand for fixed rate mortgage products has levelled off. Fixed rate approvals remained fairly steady at around 20%, but are up nearly double on last year's figures of 11%.

With lenders increasingly dropping fixed rates below 6%, Mortgage Choice spokesperson Belinda Williamson said borrowers are capitalising on fierce lender competition. "There has been a lot of rate movement in fixed rate loans in recent weeks and months. We've seen some fixed rate loan products almost a whole percentage point lower than lenders' variable rates," she said.

Ongoing discount loans remained the most popular, accounting for 45% of the companies approvals. Williamson said demand for the products had risen steadily over the year.

Standard variable rates saw a slight uptick in popularity after falling out of favour with borrowers. The products rose to 17% of all approvals, up from 15% in October.

Source: Australian Broker News