RateCity has reported that the number of variable mortgage rates offered in their database below 2% rose from 28 to 46 in just two months. In addition, there are more than three times as many variable interest rates below 2% at the beginning of the year:
“Since COVID, fixed rates have been the battlefield for banks. However, with the record number of customers now connected, some lenders are shifting their focus to floating rates, ”said Sally Tindall, research director at RateCity.
“Banks need to win, not lose, business if they want their loan books to move in the right direction.
“Well over half of all mortgage creditors still have variable interest rates. This is a huge market for potential refinancers that the banks have to target. “
The RBA’s August credit indicator data showed a similar trend, with the average discounted floating mortgage rate falling 0.15% to 3.45% – the lowest rate ever recorded:
In contrast, fixed-rate mortgage rates have started to rise slightly (to 2.19%); although they averaged 1.26% below floating rates in August, according to the RBA.
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