The popularity of fixed term home loans rose in every state during November 2010 to hit 10.9% of approvals nationally, according to customer data from Mortgage Choice, Australia’s largest independently-owned mortgage broker.
This 29-month high was a considerable increase on the 7.7% reached in October.
Mortgage Choice spokesperson Kristy Sheppard said, “Australia’s hunger for fixed interest rates is well and truly becoming a louder rumble, with demand lifting from a trough of 0.88% of home loan approvals in January 2010 to 10.9% in November.”
“The popularity of these less flexible products offering a set term of steady minimum repayments increased 3.2 percentage points last month, indicating rising borrower caution and conservatism in the face of higher interest rates and living costs.”
With the threat of further interest arte rises plus some great offerings currently for fixed term rates as well as the peace of mind knowing what your repayments are going to be, clearly more home owners and investors are opting for this option.
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