Mortgage Choice

<html><body>REA Group has announced its proposal to acquire the Mortgage Choice business.

REA announced a scheme implementation agreement to buy the ASX-listed Mortgage Choice for $244 million, or $1.95 a share, representing a 66 per cent premium to Mortgage Choice’s last close.

Their acquisition will accelerate REA’s financial services strategy to create a leading mortgage broking business in addition to its real estate listings website.

“The proposed acquisition of Mortgage Choice is an exciting development that will bring together our well established Smartline business and franchisee network with the complementary Mortgage Choice organisation and its significant broker footprint," REA Group CEO, Owen Wilson said.

The transaction is still subject to conditions being met, including Mortgage Choice shareholder and regulatory approvals.

It is expected to take approximately three months to complete.

Mortgage Choice has a $54 billion loanbook.

The network has more than 500 brokers across 380 franchises.

Its biggest shareholder is the Commonwealth Bank of Australia with an 18.5% stake.

Domain has its Loan Finder, a joint venture between Domain Holdings Australia Limited and Auscred Limited, the parent entity of mortgage platform Lendi.</body></html>

REA Group has announced its proposal to acquire the Mortgage Choice business

jchancellor

REA Group seeks to acquire the Mortgage Choice business

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GUEST OBSERVER
Nearly one in three Australian investors are worried about the rising cost of living, according to new data.  
Mortgage Choice’s Investor Survey found the increasing cost of living was the biggest issue facing Australian investors over the coming 12 months. 
I am not surprised to hear that so many property investors are worried about the cost of living.
Every day expenses such as gas, electricity, childcare, and transportation continue to rise every year, which is bound to negatively impact the hip pocket of all Australians, including property investors. 
On top of that, wage growth continues to stagnate, with the latest data from the Australian Bureau of Statistics showing wages grew just 1.9% over the 12 months to June 2017. 
According to the Investor survey, one in five investors were also worried about job security, while a further 15% were worried about rising interest rates. 
Perhaps most surprisingly, our data found one in four investors were actually concerned about rising property prices. This would suggest property investors are constantly looking to expand their portfolio of assets and, as such, don’t want property to become so expensive that it is out of reach.
There are a number of strategies investors can take to lessen the impact of the rising cost of living and rising interest rates. 
While you may not be able to control the inevitable rise in everyday living expenses or interest rates, you can control where you spend your money and how much money you save. 
With good strategic planning, you can ensure that you’re able to afford your mortgage repayments and your lifestyle now and into the future.
In the first instance, its pays to take the time to draw up a budget for your pay cycle, including all of your incomings and outgoings throughout that period. 
Make sure you are detailed so that you can identify where your money is going and where you may be able to cut back. It is important to set aside a regular portion of your income as savings. This money can then be used as an emergency fund for a rainy day. 
Moreover, whether you’ve had your mortgage for a short time or a while, it is always a good time to have your home loan checked. 
Your local broker can look at your current product and compare it with others on the market. They may be able to help you find a product with a sharper rate that will end up saving you thousands of dollars.
Investors wanting to make to make their money work harder for them should also consider speaking with a financial adviser.  
Even if you are comfortable with your current financial situation, it is worth speaking to a financial planner who can assess your financial situation and create a personalised plan to help you reach your goals. 
 
John Flavell is chief executive officer <a href="https://www.mortgagechoice.com.au/" target="_blank">Mortgage Choice</a>.
 
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jchancellor-FAypfDUnLy

1 in 3 investors concerned about cost of living: John Flavell

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The impact of COVID-19 has seen young Australians more committed to home ownership, according to research by the listed mortgage broking firm Mortgage Choice.

Around 45 per cent of survey respondents are more likely to want to purchase a home now, with a similar number feeling optimistic about achieving their homeownership goals.

Over 60 per cent of young people are reducing their spending, with 58.5 per cent adding more to their saving accounts and 43 per cent are applying for government grants for first home buyers.

Mortgage Choice chief executive Susan Mitchell says young people are not giving up on the great Australian dream despite the challenges of getting in to the property market.

"In times of uncertainty, it is human nature to want stability, and this is what investing in property can provide," Mitchell says.

“The fact that first home buyers can now access the most competitive home loan rates on record and unprecedented levels of government support such as grants and schemes provides compelling incentives to act on property ownership dreams.”

“I would encourage homebuyers who are navigating their way into first-time property purchase to enlist the help of an experienced mortgage broker to help them put their best foot forward.

First home buyers have been the most active segment over the COVID-19 pandemic. Finder's research showed that 11,018 first home buyers bought a property in July, 20 per cent more than May.

Over August data from the ABS showed mortgage approvals for first home buyers jumped by 17.7 per cent over August.
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Around 45 per cent of survey respondents are more likely to want to purchase a home now, with a similar number feeling optimistic about achieving their homeownership goals

Joel Robinson

COVID-19 sees young Australians more keen on committing to home ownership

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First home buyers are delaying or missing the opportunity to get into the property market by not engaging a guarantor on their home loan, new data shows.  According to Mortgage Choice and CoreData’s Evolving Great Australian Dream 2018 whitepaper, just 4.9% of all first home buyers said they used a guarantor to purchase their property.  However, bucking the trend are home buyers aged 29 years and below, of which 21.8% had someone go guarantor on their mortgage. 
Mortgage Choice CEO Susan Mitchell said the data raises the question that many are divided on.
"Are first home buyers missing an opportunity to get into the property market by not engaging a guarantor?”
Currently, the average first-time buyer needs to put down approximately $100,000 in deposit to secure a property with the median dwelling value of $554,605.  “For many first-time buyers, the biggest hurdle they face is saving a sufficient deposit that amounts to 20% of the purchase price, and this has been made even harder by strong property price growth over recent years,” Ms Mitchell said.  The whitepaper found that 40% of buyers would need some form of assistance to enter the property market, as they had just 15% or less of the required deposit for a property. “The Government’s new plan to allow older Australians to stay in their homes for longer, as part of the ‘More Choice Longer Life Plan’ is likely to hinder the supply of available properties to those looking to buy their first home.," Ms Mitchell said. A variety of factors is making it increasingly difficult for people to achieve the traditional Australian dream, say 86.4% of people asked by Mortgage Choice. “One way first home buyers can get a leg up onto the property ladder is to access intergenerational wealth, created by the boom in the property market, and ask a parent to be a guarantor by offering their own home as extra security,” Ms Mitchell said.  “This strategy lets them get onto the property ladder sooner rather than later, and with a smaller deposit and has the added advantage of avoiding Lenders’ Mortgage Insurance, which can total thousands of dollars for cash-strapped first home buyers.”  The whitepaper research revealed that on a whole, 15.2% of prospective home buyers across Australia would have someone go guarantor on their loan. This figure dropped to 12.6% for females.  On a state by state comparison, Western Australia had the highest proportion of prospective buyers saying that they would have a guarantor on their mortgage, at 16.5%. They were followed by New South Wales at 13.9% and Victoria at 13.3%.  Of those who purchased with a guarantor, 77.2% said their  parents were their guarantor.  Ms Mitchell said it was important for buyers and their prospective guarantor to weigh up the pros and cons before making a decision.  “Having a family member go guarantor on a mortgage is not without risk and as such, no one should jump into the situation until they’ve given it considerable thought,” she said.  “If the first home buyer defaults on their home loan, the guarantor becomes responsible for paying their debt. This can be a significant financial impost for the guarantor as it can affect their ability to cope with their own day to day costs, which in turns compromises their financial wellbeing.  “Their own ability to borrow money will also be reduced after they agree to become a guarantor.  “As a result, it is very important for both the buyer and the guarantor to set clear expectations from the outset and think carefully about their future plans.  “If a buyer has a guarantor on a home loan, it is essential they speak with a qualified mortgage broker and a solicitor to protect both parties. A contract can be drawn up that clearly explains how the loan will be structured and what happens in the event that the borrower defaults on their loan. “It is helpful to note that a guarantor is not tied to the loan for its entire duration. Once a buyer has built up sufficient equity in their property, a guarantor can apply to be released from the loan, though this may incur a fee.  “Lastly, buyers should always look at their other options as a guarantor is not the only way that someone can purchase a property. A buyer can receive a one-off financial gift to help cover part or all of the cost of the deposit, which reduces the risk to a potential guarantor,” concluded Ms Mitchell.  
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jonathanchancellor-7SQnKwU6yx

Only five percent of FHB's using an intergenerational guarantor: Mortgage Choice

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Mortgage broking firm Mortgage Choice have seen the demand for fixed rates rise in the month of September to the highest level since December 2017.
Last month they saw 24 percent of all loans written to be fixed, up six percent from August.
Queensland and New South Wales are the most likely to choose a fixed rate mortgage, both with over 26 percent of their total loans being fixed.
Victoria has seen the lowest level of fixed rate demand for eight consecutive months, however demand for this type of product rose to almost 17 percent in September – an increase of almost four percent on the month prior.
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/9/mortgage-choice2.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/9/mortgage-choice2.jpg" alt="">
Susan Mitchell, CEO of Mortgage Choice, said the shift in borrower demand was largely anticipated given the recent changes in the lending landscape. 
“September’s data is unsurprising when you consider the recent rate hikes to variable rate home loan products announced by three of the four major banks. This would no doubt be encouraging more borrowers to fix,” Mitchell said. “History has shown that when the majors lift their rates, smaller lenders are quick to offer competitive pricing on their own products in order to attract borrowers in search of a better deal. However, we have seen limited market movement due to a combination of factors such as the regulatory environment and increasing wholesale funding costs which would no doubt be affecting smaller lenders. 
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/9/Mortgage-Choice1.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/9/Mortgage-Choice1.jpg" alt="">
 
“Institutions across the country have become more selective about the customers they lend to, vying for borrowers in a healthy financial position. Indeed, lenders are seeking high-quality borrowers who present low risk.  “This highlights the need for borrowers to review their current home loan and financial situation with the help of a qualified mortgage professional and financial adviser to ensure they are best placed to secure a competitive deal when they choose to switch loan providers.”  Mitchell noted that, when home loan interest rates are on the rise, borrowers may want to consider fixing part or all of their home loan, safeguarding against further rate rises and allowing for repayment certainty each month.  “Due to the current tightened lending criteria and lender’s reduced appetite for lending, I would encourage anyone looking to secure a home loan to speak to their local Mortgage Choice broker who can help them navigate the complex lending environment and find a loan to suit their unique financial needs.
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jrobinson-rf4aSBido9

Demand for fixed home loans make a comeback in September: Mortgage Choice

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Mortgage Choice Limited (ASX:MOC) has announced the appointment of Ian Parkes as Chief Financial Officer.
Mr Parkes (pictured above) has over 20 years’ experience in the banking and financial services industry.
He has held a number of senior finance roles at BT Financial Group, Westpac and St George and most recently Mr Parkes was the Chief Financial Officer at Homeloans Limited.
As the CFO for Homeloans Limited, he led the finance function with responsibility for "all external and ASX reporting, financial control and investor relations."
Mortgage Choice Chief Executive Officer, Susan Mitchell said, “I am delighted Mr Parkes has undertaken this key appointment with Mortgage Choice as we continue to execute our business strategy, grow settlement volumes over the medium to long term and drive operational efficiencies."
Mr Parkes replaces John Stevenson who was acting CFO following Ms Mitchell's transferal from CEO to CFO in April this year.
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j.ballantyne1990-6AQqhLzZaK

Mortgage Choice appoints new CFO

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A survey of first home buyers has found most would not consider asking parents to go guarantor on their home loan
The annual First Home Buyer survey from Mortgage Choice found Victoria had highest proportion of first home buyers who would not ask parents for help.
Mortgage Choice chief executive officer John Flavell said 59.7 percent of respondents to the survey would not consider asking their parents to go guarantor on their home loan and one reason is because they don’t understand what guarantor loans are and how they work. 
“While guarantor loans have been around for a while, they have only enjoyed a surge in popularity in recent times," he said.
"As such, many first home buyers may not even be aware that guarantor loans exist.
“In addition, some first home buyers may feel as though they need to be able to prove they can buy a home on their own and don’t want to burden their parents by asking them to go guarantor on their loan.
“Nearly 65 percent of Victorian-based first home buyers said they would not consider asking their parents to go guarantor on their loan.
"With home prices rising month after month, many first home buyers were finding it increasingly difficult to get their foot onto the property ladder without some form of financial assistance.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="198">
Would you consider asking your parents to go guarantor on your loan?
</td>
<td width="44">
National
</td>
<td width="44">
NSW
</td>
<td width="44">
VIC
</td>
<td width="44">
QLD
</td>
<td width="44">
SA
</td>
<td width="44">
WA
</td>
</tr>
<tr>
<td valign="top" width="198">
Yes
</td>
<td valign="top" width="44">
35.7%
</td>
<td valign="top" width="44">
43.8%
</td>
<td valign="top" width="44">
32.5%
</td>
<td valign="top" width="44">
37.5%
</td>
<td valign="top" width="44">
31.9%
</td>
<td valign="top" width="44">
33.7%
</td>
</tr>
<tr>
<td valign="top" width="198">
No
</td>
<td valign="top" width="44">
59.7%
</td>
<td valign="top" width="44">
52.7%
</td>
<td valign="top" width="44">
64.9%
</td>
<td valign="top" width="44">
59.2%
</td>
<td valign="top" width="44">
58.5%
</td>
<td valign="top" width="44">
62.9%
</td>
</tr>
<tr>
<td valign="top" width="198">
My parents and I don't know/ understand what guarantor is
</td>
<td valign="top" width="44">
4.6%
</td>
<td valign="top" width="44">
3.5%
</td>
<td valign="top" width="44">
2.6%
</td>
<td valign="top" width="44">
3.3%
</td>
<td valign="top" width="44">
9.6%
</td>
<td valign="top" width="44">
3.4%
</td>
</tr>
</tbody></table>
“Not only are property prices rising across most capital cities, but all of the states have now removed the first home buyer grant for those wishing to purchase an established dwelling.
He said according to Mortgage Choice data more than 80 percent of first home buyers will look to purchase an established dwelling, meaning the vast majority of first timers will not receive any type of government financial incentive.
“With that in mind, there are plenty of reasons why a first home buyer may need financial assistance from their family. And while it is clear the majority of first home buyers are uncomfortable about asking a parent to go guarantor on their loan, there is a lot of benefits associated with this type of loan structure.   
“A guarantor can not only help first home buyers get their foot on the property ladder sooner rather than later, but they can also help them to avoid paying potentially costly Lenders Mortgage Insurance.
He stressed it was important to speak to a mortgage professional.
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First home buyers reluctant to ask parents for help

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New data has found a growing proportion of borrowers are seeking the security that comes with a fixed rate home loan, according to the latest national home loan approval data from Mortgage Choice.
Fixed rate home loans accounted for 22 percent of all loans written in December, up from 19.5 percent in the month prior.
“This is the fourth consecutive month that we have seen fixed rate demand increase,” Mortgage Choice chief executive officer John Flavell said.
“With speculation mounting that the Reserve Bank of Australia could soon lift the official cash rate, it is clear that a growing proportion of borrowers wish to beat any potential rate hikes by opting for a fixed rate home loan.”
Mr Flavell said current market conditions combined with a spate of rate increases by Australia’s lenders meant a rate rise by the Reserve Bank this year was now more likely than not.
“In December, the United States’ Central Bank announced it would increase the Federal Funds rate by 25 basis points to 0.75 percent.
Furthermore, the bank indicated that the Federal Funds rate could rise by a further 75 basis points throughout 2017 – through three separate rate increases.
“Closer to home, many of Australia’s lenders have already started to raise rates across their suite of home loan products.
In addition, the Reserve Bank of Australia has stated that the time for easing the monetary policy setting has now passed.
All of these factors combined would suggest that a rate increase by the Reserve Bank could be right around the corner.
“Borrowers understand this and that is why a growing proportion of mortgage holders are opting for fixed rate products.”
<a href="https://www.propertyobserver.com.au/images/2017/01/09/variable_rate.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/09/variable_rate.jpg" alt="">
Across the country, fixed rate demand was highest in New South Wales, with this type of product accounting for 27.34 percent of all loans written throughout the month of December.
“Queensland wasn’t far behind, with fixed rate home loans accounting for 24.64 percent of all loans written within the state.
At the other end of the spectrum, fixed rate demand was lowest in Victoria, with this type of product making up just 12.69 percent of all home loans written,” he said.
“Looking ahead, I wouldn’t be surprised to see fixed rate demand continue to rise across most of the states as a growing proportion of borrowers look to beat the threat of rising rates.”
<table style="width: 403px;" border="1" cellspacing="0" cellpadding="0" align="left"><tbody>
<tr>
<td nowrap width="101">
 
 
</td>
<td colspan="2" nowrap width="56">
NSW/ACT
</td>
<td colspan="2" nowrap width="60">
VIC/TAS
</td>
<td colspan="2" nowrap width="60">
QLD
</td>
<td colspan="2" nowrap width="60">
SA/NT
</td>
<td colspan="2" nowrap width="67">
WA
</td>
</tr>
<tr>
<td colspan="2" valign="bottom" nowrap width="115">
 Variable
</td>
<td colspan="2" valign="bottom" nowrap width="56">
72.66%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
87.31%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
75.36%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
84.45%
</td>
<td valign="bottom" nowrap width="52">
83.91%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Basic Variable
</td>
<td colspan="2" valign="bottom" nowrap width="56">
9.76%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
16.04%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
25.14%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
33.53%
</td>
<td colspan="2" valign="bottom" nowrap width="67">
15.66%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Standard Variable
</td>
<td colspan="2" valign="bottom" nowrap width="56">
10.74%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
21.01%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
7.17%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
13.77%
</td>
<td colspan="2" valign="bottom" nowrap width="67">
13.42%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Ongoing Discount
</td>
<td colspan="2" valign="bottom" nowrap width="56">
46.96%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
43.43%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
36.61%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
32.59%
</td>
<td colspan="2" valign="bottom" nowrap width="67">
51.52%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Line of Credit
</td>
<td colspan="2" valign="bottom" nowrap width="56">
1.32%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
1.58%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
0.61%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
1.03%
</td>
<td colspan="2" valign="bottom" nowrap width="67">
0.86%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Introductory Rate
</td>
<td colspan="2" valign="bottom" nowrap width="56">
3.88%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
5.25%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
5.83%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
3.53%
</td>
<td colspan="2" valign="bottom" nowrap width="67">
2.45%
</td>
</tr>
<tr>
<td colspan="2" valign="bottom" nowrap width="115">
 Fixed
</td>
<td colspan="2" valign="bottom" nowrap width="56">
27.34%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
12.69%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
24.64%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
15.55%
</td>
<td valign="bottom" nowrap width="52">
16.09%
</td>
</tr>
</tbody></table>
 
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Fixed rate home loan demand surges again

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Fresh data has found that more than one in four first home buyers are prepared to compromise on space, in order to get a foothold into the Australian property market.
Mortgage Choice and Core Data’s Evolving Great Australian Dream whitepaper discovered 27.6 percent of first home buyers would be happy to buy a small dwelling in order to get into the market.
According to Mortgage Choice chief executive officer, John Flavell (pictured), the Great Australian Dream of homeownership is becoming increasingly difficult, with property prices climbing across many different markets, specifically Sydney and Melbourne.
“First home buyers understand that buying property is difficult and they may not be able to buy the exact home they want, or exactly where they want,” Flavell said.
“That said, first home buyers are, on the whole, very financially savvy and they see the benefit of getting their foot on the property ladder sooner rather than later. As such, they are prepared to use different home buying strategies to make their property purchase goals a reality.”
Another popular purchasing strategy amongst first home buyers was buying in the outer suburbs or further away, with 25% of respondents saying they would employ this tactic.
“Our data shows that one in four first home buyers are willing to buy in the outer suburbs or further away from where they would prefer to live. These properties are likely to be cheaper and more affordable, and while this may appear to be a trade-off, it will be worth it in the long run,” he said.
“Once you have built up adequate equity in your property, you can then upgrade and renovate or buy a bigger and better property.”
A third strategy that first home buyers were likely to use was seeking financial support from family, which could take the form of a monetary gift or having a parent go guarantor on a home loan.
“The challenge for first home buyers these days is saving a sufficient deposit. As such, it is no surprise to see a significant number of first home buyers stating that they would look for financial assistance from family in order to make their property goals a reality.”
Flavell added that it was important for first home buyers to remember that property was a long-term investment.
“It is undeniably tough for first home buyers to get onto the property market, but it is not impossible. At the end of the day, property is a long-term investment that will require buyers to take various steps before they can own their ideal home,” he said.
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First home buyers willing to compromise on space to buy 

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Home loan approval data for July shows  fixed rate home loans accounted for 29.63 percent of all loans written throughout the month according to Mortgage Choice.
This is its highest level in more than three years, say Mortgage Choice.
John Flavell, Mortgage Choice chief executive officer said this is the highest level of demand we have seen for fixed rate home loans since December 2013, when fixed rate home loans accounted for 33.06 percent of all loans written.
“The surge in popularity for this type of product does not come as much of a surprise when we look at what’s been taking place in the market in recent weeks," he said.
“A few of Australia’s lenders have lowered the interest rates charged on some of their fixed rate products, with some trimming up to 10 basis points from their four and five year rates.
"As a result, many of the fixed rate home loans now on offer are very competitively priced.
“Of course, this isn’t the only activity taking place in the market.
"In recent weeks, many of Australia’s lenders have introduced a raft of other policy and pricing changes.
<a href="https://www.propertyobserver.com.au/images/2017/08/03/Chart-2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/03/Chart-2.jpg" alt="">
“Some lenders have significantly increased their interest only pricing across both their investment and owner-occupied products.
"These changes have helped make the mortgage market more complex than ever before.
“Subsequently, borrowers wanting certainty and security over their repayments for a set period of time are increasingly turning to a fixed rate mortgage.
"Fixed rate demand rose in every state throughout the month of July. 
"Western Australia had the highest proportion of borrowers opting for a fixed loan, with the product making up 35.77 percent of loans written throughout July.
"Not far behind was New South Wales, where fixed rate loans accounted for 33.59 percent of all loans written, and Queensland, where fixed rate loans accounted for 28.08 percent of all loans written.
"Overall, variable rate loans remained the most popular product for borrowers in Australia, particularly ongoing discount loans.
"It remained to be seen whether borrowers continued to flock towards the perceived safety of fixed rate home loans, or ride the changes in the market by selecting a variable rate product.
“Borrower demand for certain products will be dictated by what happens in the market.
“For example, if we continue see added complexity in the market - with lenders making changes to their pricing and policy - I would expect to see more borrowers opting for the security of a fixed rate loan.
"Borrowers and prospective buyers needed to remember that home loan rates are still hovering around historically low levels.
“Whether you’re looking to buy your first property, upgrade, refinance or even renovate, now it a great time to make your property goals a reality.”
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