Login
ISCOVER
Aussie Home Loans experienced a significant jump in demand for mortgage refinance over the last three months, and customers are saving over $86,000 on average as a result.
New data released by the broking giant revealed a 16 per cent jump in demand for home loan refinance during the period, with these types of loans now making up 35 per cent of mortgage brokers’ total settlements.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Aussie’s founder and executive chairman, John Symond, said the increase in home owners refinancing their loans reflects the fact that interest rates, market uncertainty and mortgages are now top of mind for the average Australian.
“There is a great deal of attention now being paid to the future of interest rates, the property market and ongoing uncertainty over the economy. Even though rates have largely been coming down through RBA cuts and hot competition, borrowers are still seeking to refinance their loans,” he said.
“Our figures show that more and more of our customers are taking advantage of record-low interest rates. They are actively seeking out and securing themselves a better deal, saving tens of thousands of dollars in many circumstances.”
Owner-occupiers are driving this growth in refinancing for Aussie, up 23 per cent of total settlements compared to two years ago. On the other hand, the number of investors refinancing has fallen by five per cent over the same period, or by 16 per cent since last financial year.
“There has been a significant level of policy and pricing change across the mortgage market, particularly around loan serviceability and investment lending, with a major factor being the lower loan-to-valuation ratios now required by lenders, and I believe this is slowing investor refinance activity,” Mr Symond said.
“The steam has also gone out of the first home buyer market as prices in many areas of the major capital cities are still very high and simply unattainable for them.”
Home owners are saving an average of 0.71 per cent on their mortgage interest rates or over $86,000 on a 30-year loan when they refinance, according to Aussie.
Borrowers in New South Wales are making the most of refinance savings with an average 0.75 per cent reduction, followed closely by those in Queensland, who are saving an average of 0.73 per cent on their mortgage rate.
[Related: Aussie gives FHBs $25,000 deposit]
