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Fixed-Rate Mortgages Find Favour with Buyers

By David Bell

Investors hoping to secure real estate in north Rockhampton may have been among those going in search of fixed-rate mortgages last month, as new figures show a rise in popularity for the financial product.

Almost every state witnessed a rise in fixed-rate home loans in December 2013, Mortgage Choice revealed, increasing to 33.06 per cent from 30.56 per cent recorded in the previous month.

New South Wales was the only exception, as the number of fixed-rate products in this part of the country experienced a drop of 0.58 per cent over the period in question.

Queensland, on the other hand, recorded the biggest leap in demand, with 44 per cent of home loans taken out in the state now benefiting from being on a fixed rate.

Company spokesperson Jessica Darnbrough said levels like these have not been seen since March 2008, suggesting people may be taking action in case the official cash rate increases next month.

"In the current economic environment and with the Reserve Bank keeping its cards close to its chest, it is not surprising to see so many borrowers opting for the safety and security of a fixed rate home loan," she commented.

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