Aussies on three-year fixed loans look to change their mortgage

Thursday 14 April 2011

Article by Mozo

There has been a 30 per cent surge in the number of inquiries by people looking to move out of a fixed-rate home loan this year, new data has revealed.

Aussies on three-year fixed loans look to change their mortgage

Dean Rushton, chief operating officer of Loan Market, cited figures from his firm indicating a growing interest in moving away from fixed-rate mortgages, reports the AAP.

He told the news provider that the reason for this is that many people set their mortgage at a particular rate in 2007 or 2008 when the base rate was fixed at 7.25 per cent.

These people were locked-in for three years, so missed the decline in interest rates to just 4.25 per cent.

"The good news for these borrowers coming off fixed rates is that they are entering an extremely competitive market where lenders are wooing customers with a range of special offers and rate discounts," Mr Rushton said.

Individuals hoping to make the most of the competitive market may want to head online to compare home loans and find the best deal.

Earlier this year, the government banned exit fees on home loans, which means it could become easier for Aussies to switch to a different mortgage provider in the future.

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