Western Australian home buyers are opting for basic variable rate loans in record numbers, signalling their preference for lower interest rates over the frills offered with standard variable rate loans, a survey has found.
The latest Mortgage Choice survey showed the popularity of the basic variable rate loan rose six percentage points to account for 52 per cent of WA home loan approvals in March.
It is the highest level since the survey started in January 2003.
The basic variable rate loan has a 12-month average of 34 per cent.
Meanwhile, the standard variable rate loan fell 11 percentage points to 36 per cent in March, lower than the 12-month average of 44 per cent.
Fixed rate loan demand represented less than 5 per cent of all home loan approvals in March.
Mortgage Choice senior corporate affairs manager Kristy Sheppard said the latest results show that consumer conservatism is thriving in WA when it comes to home loans.
"There tends to be around 40 basis points difference between the two loan types, and it appears the majority of the state's borrowers are more interested in taking advantage of saving money wherever possible in this low interest rate environment rather than taking up the greater flexibility and features offered by a standard variable loan," she said.
"Regardless, with overall variable loan demand at an almost-record 87% of approvals, it appears Western Australians are confident that rates will remain very low for some time yet."
