๐ข๐ป๐น๐ ๐ญ ๐ถ๐ป ๐ฎ๐ฌ ๐๐ผ๐ฟ๐ฟ๐ผ๐๐ฒ๐ฟ๐ ๐ฎ๐ฟ๐ฒ ๐๐ถ๐ ๐ถ๐ป๐ด ๐ฟ๐ถ๐ด๐ต๐ ๐ป๐ผ๐
The vast majority of home loan customers are currently choosing variable-rate loans over fixed-rate loans.
In April, 5.1% of new and refinanced loans were fixed (see bottom line in graph), while 94.9% were variable (top line), according to the latest data from the Australian Bureau of Statistics.
Fixing climbed as high as 46.0% in July and August of 2021, before falling to just 4.0% in September and October 2022.
The reason so many borrowers are favouring variable over fixed right now is because interest rates tend to be lower, according to Reserve Bank data.
On average, owner-occupiers who go variable are paying interest rates that are:
* 0.14 percentage points lower than those who fix for up to and including three years
* 0.58 percentage points lower than those who fix for more than three years
Subiaco finance brokers are here to help
Interest rate rises are here, but you donโt have to fear with the right broker on your side.
The team at Sonam Capital are here to empower you through financial knowledge. Weโll take the time to get to know you and your unique situation and speak in a language you can understand, with strategies you can implement for the best possible outcomes.
Nick, Wayne and Amanda at Sonam Capital are your Subiaco finance specialists.
