Demand for variable rate home loans up
Demand for variable home loans is at a five-year high as borrowers keenly await another cut in interest rates by the Reserve Bank) according to broker group Mortgage Choice. Demand for fixed-rate loans dropped to only five per cent of all approvals last month from 40 per cent in November 2007 Mortgage Choice said. Basic variable loans made up 37 per cent of approved loans in August, well above the 12-month average of 23 per cent. Standard variable rate loan demand fell slightly in August to 43 per cent of all loans issued through Mortgage Choice. Line of credit loans rose slightly in popularity to 12 per cent. Mortgage Choice writes 40,000 new home loans each year.
Source: Daily Telegraph