Young people like fixed rate mortgages

Credit Union Australia’s National Mortgage Survey: Expectations and Intentions found that Australians are unclear about whether interest rates will continue to fall in 2013 or start to rise again.

Certainty of mortgage repayments is a key driver prompting Australians to fix their mortgage rate, with over 50 per cent of respondents citing this as a reason for choosing a fixed rate. A further 58 per cent of those under 30 plan to fix their home loan rate in the future.

"The official cash rate has reached the same low levels that were seen in the peak of the GFC. However, economists are seeing signs of the global economy picking up, which suggests that rates may not go much lower, so now could be an ideal time to lock in your mortgage rate,” CUA’s general manager, products and marketing Jason Murray said.

Source: The Adviser