Mortgage Choice also reveals rise in fixed loans

Monday 17 January 2011

Article by Mozo

The demand for fixed-rate home loans reached a 31-month high in December 2010, figures from Mortgage Choice show.

Mortgage Choice also reveals rise in fixed loans

According to the data from Australia's largest independently-owned mortgage broker, every state saw a lift in the uptake of fixed-rate mortgages for a third consecutive month in December, making it the most in-demand month for fixes since May 2008.

Mortgage Choice said that fixed-rate loans accounted for 15.2 per cent of its loan approvals in December, which more than tripled the 12-month average of 4.6 per cent.

Commenting on the results, company spokesperson Kristy Sheppard suggested that fears about rising costs and interest rates had prompted Aussies to compare home loans and consider fixing.

"It's obvious that concerns about utility bills and other living cost hikes along with predicted rate rises for 2011 are having a noticeable effect on the purchase decisions of new borrowers. Home loan commitments are no exception."

The news comes after data from mortgage broker AFG, which was obtained by The Australian, showed that fixed-rate home loans made up 12.6 per cent of all its mortgages last month, up on just two per cent in December 2009.

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