Home / Posts tagged "interest rate"

interest rate

Variable-rate Loans Scaled to New Heights of Popularity

Posted on by Laze Spasevski
Variable-rate loans scaled to new heights of popularity, as demonstrated by the dramatic shift in borrowing trends. In March 2020, at the start of the pandemic, 13.38% of new borrowers chose fixed-rate loans and 86.62% chose variable. But in March 2024, a staggering low of only 1.40% of new loans were fixed, compared to 98.60% variable. This is based on the report by the Australian Bureau of S...
Read More

Interest Rates Have Evolved

Posted on by Laze Spasevski
Interest rates have evolved over the past 18 months according to the latest Reserve Bank of Australia (RBA) data. It certainly has shown the impact the RBA's cash rate rises have had on the mortgage market. The key is to compare average interest rates for all outstanding loans in April 2022 – the month before the first rate rise – and August 2023 – the most recent month for which we have da...
Read More

Refinancing Topped $20bn

Posted on by Laze Spasevski
Refinancing activity has topped $20bn in August as revealed by the latest Australian  Bureau of Statistics (ABS). It is 3.9% lower than the month before but 12.4% higher than the year before. One major contributing factor to the rise of refinancing activity is due to lots of people coming off fixed rates right now. With this in mind, it’s no surprise that an enormous amount of refinancing i...
Read More

Rates are Lower Than Expected

Posted on by Laze Spasevski
Despite the interest rate rises that have occurred since last year, rates are lower than expected. The number one contributing factor to this is the “strong competition between lenders”, according to the Reserve Bank. Between May 2022 and June 2023, the cash rate increased by 4.00 percentage points. But during that same period, the average interest rate for outstanding variable-rate loans in...
Read More

Refinancing Remained at Record Highs

Posted on by Laze Spasevski
“Refinancing activity has remained at record highs in recent months, as borrowers continued to switch lenders amid interest rate rises,” according to the Australian Bureau of Statistics (ABS). Owner-occupiers and investors refinanced a combined $20.2 billion of loans with external lenders in June, the ABS reported. While that was 3.1% lower than the month before, it was 12.6% higher than...
Read More
Top