Ensure you never miss an issue of the
real estate business bulletin
Borrowers seek discounted products

Borrowers seek discounted products

by Reporter 0 comments

Staff Reporter

New home loan borrowers are lapping up the various discounted products currently on offer.

According to new research by Mortgage Choice, 30 per cent of all borrowers sought a discounted product in April.

This is the strongest appetite seen since the broker began differentiating ongoing discount loans from others in its data reporting.

Company spokesperson Kristy Sheppard said ongoing discount rate home loans were now the most sought after product by Mortgage Choice customers.

“Ongoing discount and fixed rate home loans were the only product types to experience an increase in demand nationally last month. This was the case in almost every state, with the exceptions being Victoria and South Australia,” Ms Sheppard said.

“Consumer conservatism is seeing Australians taking advantage of discounts and bargain shopping wherever they can. This includes their home loan.”

The popularity of fixed rate home loans also increased from 10 per cent to 12 per cent.

The demand for standard variable rates dropped to 28 per cent of new loan approvals in April from 30 per cent in March and basic variable home loans fell to 22 per cent from 25 per cent.

The popularity of line of credit home loans, which are often popular with investors, dropped one percentage point to 4 per cent of approvals while introductory rate loans remained relatively steady at 4 per cent.

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Borrowers seek discounted products
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?