Variable rates remain popular

VARIABLE RATES POPULAR

Despite the cost gap between fixed and variable interest rates narrowing, a higher percentage of Australians turned their backs on locking in their home loan rate in June, loan approval data from Mortgage Choice shows.

The figures show 2.6 per cent of new borrowers chose a fixed interest rate for their home loan in June compared with 3.3 per cent in May and 1.8 per cent in April.

“Many people in the industry were expecting a rise in fixed-rate demand last month but that hasn’t happened with our customers, Mortgage Choice senior corporate affairs manager Kristy Sheppard says.

“Instead, we’ve seen this product’s popularity reduce by one-fifth. 

“Further, our June data shows fixed-rate loans have represented less than 5 per cent of all new approvals for the past 10 months and less than 10 per cent of approvals for two years now.”

The proportion of fixed loans to new borrowers dropped in all states apart from Western Australia, which was a complete reversal of June’s trend.

“Demand for variable interest rates remains at near-record highs,” Sheppard says.

METRO DETAILS RELEASED

The NSW government will extend Sydney’s light rail network by 10 kilometres so passengers can travel directly between Dulwich Hill, in the inner west, and the CBD.

The first stage of the $500 million expansion, called GreenWay, is part of the Metropolitan Transport Plan and will be a 5.6 kilometre extension to the inner west. It is scheduled to start operating from early 2012 and will run from the current light rail terminus at Lilyfield along the disused freight-rail corridor to Dulwich Hill.

“The new GreenWay is a first for Sydney – it will ensure the corridor has a mixed use for families, commuters, cyclists, walkers and joggers,” Premier Kristina Keneally said at the project’s launch.

There will be stops at Leichhardt North, Darley Road, Marion Street, Taverners Hill, Lewisham West, Waratah Mills, Arlington, New Canterbury Road and Dulwich Hill.

BRW

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