Discount rate loans rule the mortgage market

Ongoing discount rate loans are the top variable rate mortgage product for new borrowers, at 41.43% according to Mortgage Choice.

Next most popular type of variable rate mortgage is standard variable rates at 20.61% while basic variable rate loans have 17.90% of the variable mortgage market.

“This suggests that there is an increase in Australian borrowers who prefer to pay more in return for the extra flexibility and features offered by standard variable rate loans,” Mortgage Choice spokesperson, Belinda Williamson says.

“Borrowers who have a large loan amount are likely to qualify for ongoing discount rate loans or may be able to negotiate a discount off their standard variable rate.”

Demand for line of credit loans fell by 0.5 percentage points to 2.76%, while introductory rates remained steady at 0.95%.

Source: The Adviser