Demand for fixed rate loans hits 4-year high

Australian Finance Group (AFG) says demand for fixed three-year loans reached a four year high in September, with 21.5 per cent of new borrowers choosing to lock in a mortgage rate.

“The last time that fixed rate loans were so popular was in March 2008 when 24 per cent of borrowers chose to lock in rates,” AFG said in a statement.

The AFG survey found loan to value ratios rose from 66.9 per cent in June to 69 per cent in September, reflecting an increase of first home buyers in the market who tend to borrow more.

Source: The Age