Borrowers are choosing variable over fixed rates

Increasing numbers of borrowers are choosing variable-rate mortgages rather than fixed rates. Demand for fixed-rate loans has hit a two-year low.

Fixed-rate home loans accounted for just 20.6 per cent of all loans written in January 2015 according to one big mortgage aggregator, down from 22.3 per cent in December 2014.

Economists are predicting at least one more rate cut from the Reserve Bank of Australia in 2015.

Source: The Adviser