Basic home loans more popular than variable mortgages
Home buyers are flocking back into variable rate mortgages, which now account for 91 per cent of the residential lending market, their highest proportion in four months, a leading mortgage broker says.
Mortgage broker Mortgage Choice reports that in April basic variable mortgages accounted for 48.15 per cent of all home loans approved – up nearly one per cent from March, while standard variable mortgages comprised 42.77 per cent of the market, down 1.47 per cent from March.
Basic variable loans generally have fewer loan features than a standard variable loan, Mortgage Choice says.