More Western Australians are turning towards fixed rate loans as latest figures from broker Mortgage Choice show demand at a near 12-month high.
The announcement is below:
Fixed rate loan demand in Western Australia rose to 7% of all Mortgage Choice customer loan approvals in June 2009, above the 12-month average of 4% and the highest level reached since August 2008.
Australia's largest independently-owned mortgage broker found that, in contrast to all other states apart from Queensland, standard variable loans were the most popular type of loan in Western Australia at 47% of all loan approvals. The five percentage point increase moved it in front of the 12-month average of 44%.
Variable rate loans remained very much the favourites all round, at 80% of all loan approvals. Demand here has been tracking at or above 80% since September 2008.
However, the popularity of basic variable loans fell dramatically to 33%.
"Despite rising interest rates on fixed term home loans and talk of variable rates staying low for many months yet, demand for fixing in Western Australia is on the rise," said Mortgage Choice senior corporate affairs manager Kristy Sheppard.
"Although only 7% of all loan approvals for June were for fixed loans, it looks like we are over the downward trend seen during much of last year. That figure is well ahead of the 12-month average of 4%.
"Standard variable loan demand rose in June, increasing from 41% of all loan approvals to 47% and overtaking the 12-month average of 44%. Many of these loans are professional packages, where eligible customers with a loan worth over $150,000 can receive discounts on the interest rate along with other professional package features.
"Basic variable loans dropped in popularity by a large 13 percentage points, falling under the 12-month average to reach 33%. "
Uptake of line of credit loans (generally popular with property investors) increased to 13% of all approvals, comparing to a 12-month average of 12%.
