THE bruising political row over banking competition has made potential home buyers more savvy with many opting out of fixed-rate loans, according to new figures.
It may have also turned up the pressure on lenders to be more creative in attempts to gain market share, even before the federal government implements its range of proposed initiatives.
Those taking the plunge into home ownership appear to be turning their backs on the security of fixed-interest-rate loans, instead choosing from a wider range of variable rate mortgages that are being offered.
A study by mortgage broker Loan Market has found a significant increase in the number of people seeking out home loan and mortgage calculators through the internet.
An examination of web traffic showed that those searching the term "home loan calculator" accounted for 20 per cent of mortgage broker website traffic in February, more than doubling since the start of 2011.
Loan Market chief operating officer Dean Ruston said it was an encouraging sign that potential borrowers were becoming more proactive.
"Customers want to be informed when they sit down with their mortgage broker or lender ... to ensure that they get the best available option," Mr Ruston said releasing the findings on Monday.
Last November's spike in standard variable mortgage rates, led by the four major banks, caused a political furore and prompted parties of all stripes to come up with various banking competition packages.
The 40-basis-point jump in standard variable mortgage rates - larger than the Reserve Bank of Australia's (RBA's) 25-point increase in the cash rate - also saw a growing number of home buyers opting for the security of a fixed-rate loan.
However, home loan provider Mortgage Choice said demand for such loans tumbled in February for the first time in seven months in response to a wider range of variable rate mortgages coming on the market.
The proportion of fixed-rate loans it granted was just 10.7 per cent in February, the lowest amount since October, and compared with 15.3 per cent in January and 15.2 per cent in December.
Mortgage Choice currently writes one in 25 new home loans in Australia.
"It appears new borrowers were lapping up the newly introduced deals on offer in February, taking advantage of lenders' various incentives as they compete to outstrip each other of vital market share," the broker's spokesperson Kristy Sheppard said releasing the results.
"A move away from fixed interest rates may also signal an uptick in positive consumer sentiment towards the economic outlook."
The RBA left the cash rate at 4.75 per cent for a third straight monthly board meeting last week, and economists expect this stability to continue.
Official housing finance data for January is released on Wednesday by the Australian Bureau of Statistics, the same day as the latest consumer confidence report is released by Westpac and the Melbourne Institute.
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