Variable home loan rates 'growing in popularity'

House buyers in Australia are starting to favour variable home loan rates as they look into their options more closely, it has been claimed.

A study by mortgage broker Loan Market revealed a rise in the number of people deciding to compare home loans on the internet, reports the Australian Associated Press.

According to the report, the term "home loan calculator" accounted for 20 per cent of mortgage broker website traffic in February 2011.

Many consumers opted out of fixed-rate loans and there was an increase in home buyers deciding on variable rate options.

Dean Rushton, chief operating officer of Loan Market, said customers want to ensure they are wellinformed before they make any decisions about how to finance their home purchase.

In an article for the Sydney Morning Herald published earlier this month, Lesley Parker advised house hunters in Australia to beware of a "fee ambush" from big bank lenders that are offering discounts.

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