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Record-low interest rates are not doing anything to persuade Australians to enter the property market, but refinancing activity remains strong, research has shown.
New research from online home loan platform Lendi revealed that majority of new home buyers do not believe now is a good time to buy property, despite record-low interest rates.
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The Reserve Bank of Australia (RBA) slashed the official cash rate to a new record-low of 0.75 per cent on Tuesday. This followed rate cuts in June and July.
However, of the 2,500 Australians surveyed, just 26 per cent of non-homeowners believe now is a good time to enter the property market.
Those already in the market are more optimistic, with 48 per cent of existing property owners believing now is a good time to buy property.
Co-founder and managing director of Lendi David Hyman said there were a variety of factors preventing people from buying property.
More than a quarter (28 per cent) cited rising cost of living as a hindrance, while a quarter said housing affordability was a concern, 15 per cent said job security was an issue, 13 per cent found time required to save for deposits challenging, and 10 per cent were concerned about price stability.
Mr Hyman said many borrowers are refinancing not only because of the low interest rates but also because they are looking at boosting their savings.
“We’ve seen huge numbers of Australians refinancing in recent months, which reflects not only a more competitive interest rate environment but a broader trend of households looking at tightening their belts and finding new ways to reduce their debt and liabilities,” he said.
[Related: Home loan activity slows but set to soar]
