Fixed rate mortgages flagged as key to investor success

Particularly for investors, there are advantages that can be found in fixed rate mortgages, Ms Mitchell said.

“The certainty that comes from knowing exactly how much your home loan repayment will be each month brings peace of mind to many borrowers, especially first-time buyers who are adjusting to life with a home loan,” she said.

According to recent home loan approval data from Mortgage Choice, demand for fixed rate home loans accounted for just 14 per cent of all home loans written.

“Despite some very attractive fixed rate home loan pricing, borrowers across the country are reluctant to fix,” Ms Mitchell said.

“Demand for fixed rate loans is the lowest we’ve seen all year.”

The statistics revealed that Victorians are the least likely to lock in a rate, with just 7 per cent of investors choosing a fixed rate.

In contrast, NSW borrowers are the most likely to take advantage of the cheaper fixed conditions, with 19 per cent of new home loans being taken at a fixed rate.

Regardless of the choice for fixed or variable, the CEO flagged the importance of borrowers checking whether they are able to get a better deal.

“My advice to borrowers who are considering switching their home loan would be to have their current loan reviewed by an experienced mortgage broker,” she offered.

“It won’t cost you to get a home loan health check, and you may learn that there are better deals on the market that could help you pay off your loan faster or reduce your repayments, for example.”