SOLD - Real Estate Western Australia

2 Friday July 13, 2012
New borrowers buy into variable
rate cuts
Ongoing discount variable rate loans remain the favourite
The percentage of new borrowers choosing
variable rate home loans rose in June for
the third consecutive month as rate cuts hit
home, according to national loan approval data from
Australia’s largest independently-operated mortgage
broker, Mortgage Choice.
Borrowers have taken advantage of lenders’ recent
rate cut off ers by fl ocking to variable rate loans, with
demand for this loan type rising by three percentage
points to 82% of all new home loan approvals last month.
Th is is the highest level recorded in nine months.
Th e biggest increase in variable rate loan approvals
was in WA, which saw the popularity rise by seven
percentage points, to reach 86% of all new loans. Th is
was followed by QLD (up six percentage points, to 80%),
VIC (up two percentage points, to 88%) and NSW (up
two percentage points, to 79%). SA was the only state to
reverse the trend with popularity of variable rate loans
slipping by six percentage points, to 78%.
Company spokesperson Belinda Williamson said,
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PEET.COM.AU 13 PEET
“Th e end of the fi nancial year brought with it an air
of optimism around the direction of interest rates as a
growing number of home loan borrowers, more than
one in four, chose variable rates. Perhaps whispers of one
more rate cut in coming months is wielding infl uence.”
“Borrowers may be incentivised by the cost gap
between some variable and fi xed rates.
“Our extensive lender panel, which consists of major
and smaller banks, non-bank lenders, credit unions and
building societies, currently has an average three-year
fi xed rate loan at 6.22%. In comparison, the average
standard variable rate is 6.79%.
“However, it is possible for borrowers to negotiate
a discount on their standard variable interest rate - to
below 6% in some instances. Th e majority of our new
borrowers were taking up this loan option in June.
“Ongoing discount rate loans, where the variable
rate is negotiated to a reduced amount over the loan
term usually in return for an annual fee, remained
the loan of choice, accounting for two fi ft hs of all
SO MANY
REASONS
TO VISIT.
*Prices correct as at 11 July and are subject to change without notice.
HOUSE
AND LAND
FROM JUST
$330,700 * .
new home loan approvals last month.
“It goes to show there are competitive deals on
off er for new borrowers as well as those looking to
refi nance. Th e tip is to work with a reputable mortgage
broker who has a large lender panel and explore your
loan options thoroughly. If you don’t, you could be
robbing yourself of savings!”
NATIONAL
Th e second most popular loan type for June
was basic variable rate, at 19.1%, closely followed
by standard variable rate, at 18.6%. Th e popularity
of line of credit home loans rose by just over
one percentage point to 3.8% of approvals and
borrowers’ preference for introductory rate loans
remained below 1%.
We have your potential dream home online
visit us now
www.realestatewa.com.au
JUNE
2012
MAY
2012
EVEN MORE
REASONS
TO LIVE.
Make your ideal holiday, your ideal everyday at Yanchep Golf Estate. Built
around a stunning 18-hole golf course and situated next to a thriving national
park, it’s minutes from the beaches you’ve probably holidayed at. The big
difference is now you can live here. It’s closer than you think, only fi ve
minutes from Alkimos. So visit today.
Call Tina Jones on 0403 027 517 or visit the Sales Offi ce on Yanchep
Beach Road, Yanchep. Open Wednesday, Saturday and Sunday 1-5pm
or go to yanchepgolfestate.com.au
6 MONTH
AVERAGE
12 MONTH
AVERAGE
h Variable Rate 81.99% 79.31% 78.52% 80.20%
h Basic Variable Rate 19.06% 17.18% 15.95% 16.22%
i Standard Variable 18.64% 18.70% 17.33% 17.30%
h Ongoing Discount 40.31% 40.05% 41.29% 41.71%
h Line of Credit 3.76% 2.72% 3.33% 3.77%
i Introductory Rate 0.22% 0.65% 0.62% 1.19%
i Fixed Rate 18.01% 20.69% 21.48% 19.80%