Fixed-rate packages 'increasingly attractive to home loans customers'

Mozo

Tuesday 27 September 2011

Aussies hoping to get on the property market by taking out home loans appear to be showing increasing interest in fixed-rate packages, an expert has stated.

Fixed-rate products 'more attractive'

Dean Rushton, chief operating officer of Loan Market, told the Australian Associated Press that some deals are now up to 1.5 per cent lower than the standard variable interest rates.

He asserted that these products have become increasingly attractive amid the volatitle financial climate and poor consumer confidence.

"Despite the prospect of a long overdue cash rate cut, consumers have been taking a close look at these highly attractive fixed-rate packages on offer," Mr Rushton said.

He observed that when the Reserve Bank of Australia last changed the cash rate, fixed-rate products were 0.5 per cent higher than the majority of variable rates.

This comes after figures from Royal Bank of Scotland economists revealed that banks offer the vast majority of the home loans available in the country, accounting for 93 per cent of new loans, reported the Sydney Morning Herald.

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