Fixed rate home loan approvals drop to below 3%

The popularity of fixed interest rate home loans across Australia has continued to fall, according to October 2009 data from Mortgage Choice, Australia’s largest independently-owned mortgage broker. Fixed rate loans now account for less than 3% of all new loan approvals, while the demand for variable rate loans rose by two percentage points, to 97% of approvals.

Fixed rate products have accounted for less than 10% of the company’s new loan approvals for the past 16 months, while variable rate loans have become almost exclusively the loan of choice for recent home loan borrowers.
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