Borrowers are expected to show greater interest in fixed rate home loans following a renewed wave of discounting from lenders.
A recent survey by Loan Market Group found almost 80 per cent of mortgage brokers believe demand for fixed rate loans will increase as a greater number of lenders cut their rates to five year lows.
Loan Market corporate spokesman Paul Smith said 36 per cent of the 193 brokers surveyed expect a moderate five to 10 per cent increase in applications while 15 per cent believe there will be significant rise of more than 10 per cent.
Mr Smith said 28 per cent of brokers see a slight increase of up to five per cent while 21 per cent don’t expect any increase in applications.
“Despite the prospect of the Reserve Bank of Australia (RBA) lowering official rates again, borrowers are drawn to fixed rates with some at their lowest level in five years,” he said.
“There are some very competitive fixed rate offerings in the market, including some which are well below the bank’s standard variable rate.”