Hervey Bay Independent : 19th February 2015
Fixed rate demand falls further in January With speculation mounting that the official cash rate could be cut at least twice this year, an increasing number of borrowers are choosing to take out a variable rate mortgage. According to the latest national home loan approval data from Mortgage Choice, fixed rate home loans accounted for just 20.55% of all loans written in January. Local Mortgage Choice franchise owner and mortgage broker Peta Short said demand for fixed rate products is now sitting at a two year low. “The last time fixed rates accounted for less than 21% of all loans written was back in February 2013,” she said. “Of course, given that many analysts are now predicting that the Reserve Bank of Australia IMPORTANT INFORMATION This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances. ABOUT MORTGAGE CHOICE Australia’s largest independently-operated mortgage broker, Mortgage Choice has sourced a home loan for well over 350,000 people since 1992. It works with all manner of property finance borrowers via hundreds of franchises. The company writes almost one in every 20 home loans in Australia by providing professional guidance on, and choice of, products offered by an extensive panel of leading lenders. Many of its brokers provide a broader service, helping customers source commercial and personal loans, asset finance, deposit bonds and risk and general insurances. Uniquely, Mortgage Choice pays its franchisees the same commission rate for home loans they write, regardless of rate paid by the lender a new customer selects, working in the customer’s best interests to tailor a solution to them. If you want to learn more about your home loan options, call Peta’s team on 4124 7822 in Hervey Bay and 4123 5022 in Maryborough Visit www.mortgagechoice.com.au/peta.short or www.facebook.com/petashort A new Real Estate Agency has opened in Hervey Bay! List Exclusively with Rory & Amy’s Real Estate and we will supply: A FREE SKIP to help clear out the junk 20 FREE PACKING BOXES to pack up the good stuff 1 FREE LAWN MOW so you can focus on the inside This offer may not suit a unit or tenanted property, so let’s negotiate something else! When? Our Client can choose any time in the period between a successful sale and settlement Catches? The property must be listed Exclusively with Rory & Amy’s Real Estate at the time of sale. How much commission? YOU suggest how much Commission you want to pay, everything is NEGOTIABLE! I will explain the different advertising packages available, YOU DECIDE. Commission + Advertising = TOTAL PAYABLE $250 of our commission goes to Hervey Bay Riding for the Disabled Please Note: This offer is only applicable to properties listed EXCLUSIVELY with Rory & Amy’s Real Estate. The ‘Total Payable’refers to the amount payable to Rory & Amy’s Real Estate. Legal fees and any other professional services you may engage are not reflected in this advertisement. Phone 4125 2001 www.roryandamy.com.au will cut the cash rate in the not-too-distant future, it is unsurprising to see demand for fixed rate home loans decreasing and an increasing number of borrowers opting for a variable rate home loan.” Looking at the data, variable rates accounted for 79.45% of all loans written in January, with ongoing discount loans proving to be the most popular variable rate product type, with this home loan accounting for 44.36% of all loans written. Across the country, variable rates were most popular in Victoria, with this type of home loan accounting for 84.78% of all loans written. Western Australia and South Australia were not far behind, with variable rates accounting for 81.96% and 80.92% respectively. On the flipside, demand for variable rate mortgages was lowest in New South Wales, with this type of product accounting for 76.38% of all loans written within the state last month. “Regardless of whether a borrower opts for a fixed or variable rate product, they can be assured of securing a very competitive rate,” Peta said. “Rates are sitting at historically low levels at the moment, so borrowers really can’t go wrong. At the end of the day, there is no right or wrong when it comes to choosing between a fixed and variable rate home loan, it all comes down to personal preference and what option you feel most comfortable with.” The company has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA). Recent recognition: 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2012 Australian Broking Awards Best Training and Education; 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list. Mortgage Choice holds an Australian Credit Licence: no. 382869, issued by ASIC. Visit www.mortgagechoice.com.au or call customer service on 13 6678.
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