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As lenders continue to reduce their home loan rates, a new report has revealed almost half of home owners have never refinanced.
In a survey of more than 1,000 mortgage holders by Aussie Home Loans, 45 per cent of participants said they have never refinanced.
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Of these, 29 per cent said they have not done so because they did not think they would get a better deal; 18 per cent had not thought about it or did not know where to start; and 17 per cent believed it is too time consuming.
The survey also found the remaining participants who had refinanced did so more than two and a half years ago.
Aussie chief executive James Symond said the results indicate that Australian mortgage holders are missing out on potential savings of $240 per month by not refinancing their home loans to get a better deal.
“Our survey shows that many home owners could be missing out on great deals and potentially big savings,” he said.
“That’s money going to the banks and other lenders that Australians could instead be investing back into their mortgages or spending on things like holidays, eating out or their kids’ education.
“It’s not surprising that home owners don’t know where to start and think refinancing is time consuming, but that’s where a mortgage broker can help,” he said.
The survey found three quarters of respondents do not know how much money they could save by refinancing.
Mr Symond said this reinforces the need for brokers to assist mortgage holders in reviewing their home loan.
“There is red hot competition in the home loan market and lenders are fighting for market share, with some offering attractive incentives to get customers to switch their home loan,” he said.
“It’s just smart for people to investigate whether they can get a better deal, whether by refinancing or simply asking your lender for a better rate.”
[Related: ME announces more rate cuts]
