Katrina Parrington

Mortgage & Finance Broker, Elders Home Loans – Northern Territory – P. 8932 8900

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  • Elders Home Loans

  • Katrina Parrington

    I am a long term Centralian resident with more than 18 years experience in the financial services industry. Initially, in Real Estate in Adelaide before pursuing a career with Elders Insurance Alice Springs and lending roles with major banking institutions where I gained extensive experience in Home Loans and Commercial Lending here in the Alice and in Darwin.

    I have a unique set of skills that ensures I understand your lending needs and can provide you with professional advice and personal service.

    Tel: 08 8953 8800
    email: katrina.parrington@eldershomeloans.com.au

Fixed-rate loans falling out of vogue

Posted by Katrina Parrington on March 10, 2011

THE bruising political row over banking competition has made potential home buyers more savvy with many opting out of fixed-rate loans, according to new figures.

It may have also turned up the pressure on lenders to be more creative in attempts to gain market share, even before the federal government implements its range of proposed initiatives.

Those taking the plunge into home ownership appear to be turning their backs on the security of fixed-interest-rate loans, instead choosing from a wider range of variable rate mortgages that are being offered.

Last November’s spike in standard variable mortgage rates, led by the four major banks, caused a political furore and prompted parties of all stripes to come up with various banking competition packages.

The 40-basis-point jump in standard variable mortgage rates – larger than the Reserve Bank of Australia’s (RBA’s) 25-point increase in the cash rate – also saw a growing number of home buyers opting for the security of a fixed-rate loan.

However, demand for fixed rate loans has fallen in February in response to a wider range of variable rate mortgages and packages coming on the market.

A move away from fixed interest rates may also signal an uptick in positive consumer sentiment towards the economic outlook.

The RBA left the cash rate at 4.75 per cent for a third straight monthly board meeting last week, and economists expect this stability to continue.

2 Responses to “Fixed-rate loans falling out of vogue”

  1. Can anyone reveal to me if brokerages impose a payment for their support or ought I just go straight to a lenders internet site exclusively? Many thanks in advance for your consideration.

    • Katrina Parrington said

      Hi Yvone, No charge to you the client for using our services the banks pay us because it is cheaper to have me writing business for them than to have a bank staff member sitting in a bank, using their phone & IT that they have to pay salary, sick leave, holidays and long service leave So Banks like Brokers and are prepared to pay us for our work

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