Fixed-rate home loans 'in high demand'
Figures from Mortgage Choice revealed that these accounted for 20 per cent of the home loans taken out in October.
Kristy Sheppard, company spokesperson, observed that the demand for fixed rate accounts has risen to a level not seen for three-and-a-half years.
"When comparing our October loan approval data to that extracted one year ago, it's remarkably obvious how much the industry has changed in reacting to subdued housing finance demand and a relatively positive interest rate outlook," she said.
She explained that some of the reasons behind the increased popularity of fixed interest rate products are the economic uncertainty in the country and the rise in living costs.
According to financial planner Glenn Fairbalm, director at Hewison Private Wealth, fixed-rate home loans are ideal for those "walking a financial tightrope", reported National Features.
Have a question about interest rates? Ask the money gurus at Mozo Answers.