Discount variable mortgages still the most popular

Fixed rate loan demand rose in February by 2.06 percentage points to reach 18.41 per cent of all new loan approvals.

Mortgage Choice spokesperson Belinda Williamson said fixed rate loans were most popular in Queensland, where demand reached 23.05 per cent of all new loan approvals.

“Victorians were the least likely to take out a fixed rate loan in February. In fact, only 11.08 per cent of the state’s loan approvals were for fixed rates, compared to the national average of 18.41 per cent.

“Ongoing discount variable rate loans were the loan of choice across all states. Victoria led the charge, at 44.34 per cent of new loan approvals, followed closely by New South Wales at 43.61 per cent and Western Australia at 43.48 per cent.

However, there was a considerable gap to the next state in line, Queensland, at 39.17 per cent of new loan approvals and South Australia at 38.06 per cent,” she said.

Source: The Adviser