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Fixed Rates Preferred in WA

The level of new fixed rate home loans more than doubled in October to reach a 27-month high of 7.7 per cent of all new approvals.

This level of demand was well ahead of the six-month average of 3.7 per cent and the 12-month average of 2.7 per cent.

The demand for fixed rate home loans increased substantially across Western Australia in October – by over four percentage points to 7.7 per cent of new home loan approvals. This was the highest level seen since July 2008.

However, standard variable home loans remain the product of choice, at 47.4 per cent of all loan approvals. Basic variable loans follow at 40.3 per cent.

Other key home loan choice trends for the month were:

  • Line of credit (often popular with investors): fell to 3.9 per cent of approvals from 4.8 per cent.
  • Bridging (for those selling property while purchasing another): remained below 1 per cent.