The variable home loan is king in Australia and basic variable is moving ahead in the mortgage wars.
Australian Home buyers love affair with fixed rate mortgage loans is over, with mortgage brokers reporting less than 10% of their home loan approvals are fixed rate loans these days.
Variable home loans are king, and make up over 90 per cent of the residential lending market mortgage loan approvals.
The basic [no frills] variable home loan is ahead in the mortgage stakes with the majority of customers opting for lower rates over flexibility options.
Our experience is that in two or three years these people are back to us looking for the flexibility of the standard variable loan, says Gold Coast Mortgage Broker Rick Adlam of MrMortgage.com.au
Basic variable loans have fewer loan features and less flexibility than a standard variable loan, says Rick, but in this climate “money talks”.
Fixed rate mortgage home loans have never been popular
with Australians, and unless we see Federal backed mortgage industry
like in the US, they probably never will be a popular mortgage choice.
Home loan mortgage rates on variable mortgage loans generally move in line with interest rates as set by the Reserve Bank of Australia (RBA), which has successively cut its official cash rate over the last six months over 4 percentage points.
The Housing construction industry is still moving steadily along on the Gold Coast thanks to the Rudd Federal Governments decision to Boost the First home owners grant back in October, and to extend this till the end of 2009.
The basic variable home mortgage loan is the favourite pick of new home owners.
