Borrowers back-off fixed rates

More Australians are choosing variable home loans over fixed, according to the financial comparison website RateCity.

Data from RateCity showed applications for fixed rate home loans has fallen steadily since June this year.

In August, 27 per cent of all home loan applications were for fixed loans, significantly less than the 33 per cent peak recorded in June.

RateCity’s chief executive officer Damian Smith said he expects the number of fixed rate loan applications to fall further in September.

“Fixed rate home loans will remain less popular than variable home loans as more lenders introduce different types of features to the market including rate tracking and capped loans,” he said.

More Australians are choosing variable home loans over fixed, according to the financial comparison website RateCity.

Data from RateCity showed applications for fixed rate home loans has fallen steadily since June this year.

In August, 27 per cent of all home loan applications were for fixed loans, significantly less than the 33 per cent peak recorded in June.

RateCity’s chief executive officer Damian Smith said he expects the number of fixed rate loan applications to fall further in September.

“Fixed rate home loans will remain less popular than variable home loans as more lenders introduce different types of features to the market including rate tracking and capped loans,” he said.

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