Fixed rate loans 0.50% cheaper than variable
Fixed rate loans now account for 14.5 per cent of all new mortgages – the highest figure since 2008, and up from just 7.5 per cent in March 2011.
The value of fixed loans is also starting to rise, with the average locked-in mortgage growing from $266,200 to $300,900.
Fixed rates among the major banks, with discounts, are more than 50 basis points cheaper than most standard variable rates.
Suncorp Bank personal lending general manager Tony Meredith said, “After the November and December rate cuts and also the declines in the fixed rates since the middle of March, fixed rates have been a popular choice across the market because there is a discount to some of the standard variable rates available," Mr Meredith said.
Source: The Australian