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One in four borrowers choosing fixed rate mortgage

23/01/2012

Home loan borrowers are jumping into fixed rate home loan products, even as standard variable home loan rates tumble.

Home loan sales for fixed rates of two years or more continued to surge in November, reported the Australian Bureau of Statistics this week, even after two Reserve Bank rate cuts totalling 0.5 per cent.

Fixed loans rose from 10.6 per cent of new housing loans before the November cut to 11.1 per cent, the highest proportion since the financial crisis in 2008.

“It is possible borrowers’ need for certainty around their home loan repayments, coupled with the affordability of fixed rate loans are the driving forces behind demand for this loan type,” said Belinda Williamson, spokesperson for Mortgage Choice.

Source: Courier Mail



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