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Jessica Darnbrough
Cutthroat mortgage rates have driven significant refinancing activity amongst brokers according to the latest The Adviser online straw poll.
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Of the 149 brokers polled 61.1 per cent said business was currently most active in the refinancing sector of the market.
Investors came second, with 16.8 per cent of respondents stating that this sector was running hot, while just 12.8 per cent felt the greatest amount of business opportunities was coming from first home buyers.
Speaking to The Adviser, Sure Direct Loan Options’ Bruce Weaver said a majority of his enquiries were coming from refinancers at the moment.
“The refinancing sector is definitely running hot at the moment. There is a lot of competition between lenders, which is encouraging home buyers to look at their mortgage options,” he said.
But while Mr Weaver said he is receiving a lot of enquiries from refinancers, the enquiries are not necessarily converting into business settlements.
“Sometimes for refinancers the best advice is to do nothing at all,” Mr Weaver said.
“Often the mortgage deal they are currently in is the best one for them and, in many instances, buyers will gain nothing from refinancing.”
Mr Weaver said in terms of business written, investors were leading the way.
“The majority of my business is coming from my investor clients. If you are confident about your employment, have equity and a steady income, now really is a great time to invest,” he said.
