Record low fixed rates helping to drive demand, but won’t last much longer.
Melbourne, Friday 19 April 2013 - ME Bank’s home loan market share increased significantly between April 2012 and March 2013, according to one of Australia’s largest mortgage brokers, AFG.
AFG, which accounts for 10% of the total home loan market, reported the number of ME Bank home loans it processed between April 2012 and March 2013 increased from 0.9% to 2.1%.
ME Bank’s share of refinancing loans increased to 3.9%, investor loans to 2.2%, and first home buyer loans to 1.9%, over the same period.
Ian Hendey, ME Bank’s Group Executive Sales, said borrowers are becoming increasingly aware of ME Bank’s transparent, straight forward and low-cost home loan products, including our record low fixed rates.
“Since September 2012 ME Bank has been offering some of the lowest fixed rates in the market, including the only three-year fixed rate as low as 4.99% p.a..
“The popularity of fixed rates has been increasing with a growing belief we’re nearing the end of the current falling interest rate cycle.
“Fixing allows borrowers to lock in rates they believe will be lower than the average standard variable rate over the same period, helping to pay off their home loan faster, while also providing an insurance policy, giving cash-flow certainty.
Hendey said “borrowers who still want to access the only three-year fixed rate under 5.00% p.a. should get in fast because we don’t expect fixed rates to stay low forever. Some lenders are already increasing fixed rates.”