Demand for fixed-rate home loans is at its highest point since March 2008, according to data from one of the country’s largest broker groups.
Data released by Mortgage Choice shows demand for fixed-rate loans soared to 33.06 per cent of all loans in December, significantly up from the 30.56 per cent recorded in November.
Mortgage Choice spokesperson Jessica Darnbrough said the increased demand is a result of more borrowers looking for certainty in repayments, given the current economic environment.
“With the Reserve Bank keeping its cards close to its chest, it is not surprising to see so many borrowers opting for the safety and security of a fixed-rate home loan,” she said.
The increased demand for fixed-rate products came despite the fact several lenders lifted the interest on fixed-rate products toward the end of 2013.
The Mortgage Choice data shows that across the country, demand for fixed-rate products increased in every state but NSW, which recorded a 0.58 per cent drop.
At the other end of the spectrum, Queensland recorded the biggest jump in demand, with this type of product now accounting for more than 44 per cent of all home loans written.