The number of borrowers choosing to fix the rate on their home loan has risen considerably, as fixed rates currently offer a better value than variable home loan rates. According to a study done by finder.com.au, nearly one in five people with a new home loan fixed their rate in July.
New owners of real estate in Bunbury may consider fixing their rate if income circumstances are likely to change. If a couple is planning on starting a family, for example, they may want the greater security a fixed rate offers, as income may be reduced as one or both parents take leave from work.
According to findings by the Australian Bureau of Statistics (ABS) in July 2013, more than 18 per cent – or nearly 10,000 – of all loans financed were fixed rates, indicating the widespread interest in the peace of mind a good fixed rate supplies.
Generally, variable rates are lower than fixed ones, and with rates for fixed loans still decreasing, it makes sense that so many people are snapping them up.
Those involved in real estate in Bunbury south may also be interested in the current allure of fixed rates as they consider which kind of home loan will suit them best.