Fixed rates are getting more popular
Latest figures from the Australian Bureau of Statistics found about 12 per cent of borrowers for new home loans in 2012 chose fixed loans – the highest portion since 2008.
When the global financial crisis hit in 2007, ABS figures showed more than 20 per cent of borrowers opted for fixed loans.
Three-year fixed rates are now at the lowest levels in 20 years. For many lenders fixed rates have fallen below the standard variable rate.
HSBC chief economist Paul Bloxham said the fixed rates had reached the bottom. “Our view is the RBA might be quite close to the end of their easing phase, so fixed rates might also be close to their trough.”
Source: The Daily Telegraph