Home loans customers 'want affordability and flexibility'

Mozo

Thursday 06 October 2011

Aussies in the market for home loans are keen to find fixed rate mortgage products, according to an expert in the sector.

Aussies 'keen on fixed interest rates'

Kristy Sheppard, company spokesperson for Mortgage Choice, explained that 45 per cent of the home loans sold by the broker fit into this category in September.

She asserted that many consumers are unwilling to opt for products with variable interest rates, "particularly if they feel they've snagged a bargain".

"Australia has almost reached the point where one in two new borrowers is seeking the combined benefit of affordability and flexibility," Ms Sheppard stated.

Figures released by the company revealed that there has been a decline in demand for basic variable rate home loans, falling from 16 per cent to 15 per cent month-on-month in September.

Last month, Heritage Building Society announced that it had reduced interest rates on its fixed rate home loans, pushing its five-year rate down to 6.69 per cent.

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