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ISCOVER
Staff Reporter
Refinancers will drive the property market forward in 2013, a new poll has revealed.
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According to a straw poll conducted by 1300HomeLoan, 44 per cent of brokers believe refinancing will dominate the property market in the New Year, while 27 per cent believe investors will be the most powerful force.
Of the respondents, just 17 per cent said first home buyers would dominate, while 12 per cent targeted upgrades.
1300HomeLoan managing director John Kolenda said the Reserve Bank of Australia’s decision to cut the official cash rate to just 3.0 per cent during 2012 and the perception that the banks were ripping off consumers by failing to pass cuts on in full would persuade many home owners to refinance.
“Australians traditionally are reluctant to switch lenders but they are gradually changing their attitude,” he said.
“Home owners on an average $380,000 mortgage can save up to $3,420 a year if they make the effort to switch lenders for a better home loan deal.
“There can be as much as a 0.90 percentage points difference between the variable home mortgage rates offered by different lenders and with mortgage brokers taking most of the hassle out of switching these days, refinancing is a lot more attractive.”
Mr Kolenda said first home buyers, who had driven the market in 2008 and 2009 following the global financial crisis, were expected to continue holding back because of the reduction in government incentives, as well as due to concerns both about the local economy and job security.
“Although some of these concerns are warranted, the current state of the market along with the low interest rate climate presents a good opportunity for first home buyers to buy their first home,” Mr Kolenda said.
“In some areas the monthly repayments would be similar or close to the level of rents being paid. I would encourage first home buyers to explore their options by seeing a mortgage broker as well as educating themselves on home prices in areas of interest.”
“This way they can make a more informed decision on whether to remain renters or buy their first home. To get some security over their monthly repayments they should also explore some fixing rate options,” Mr Kolenda said.
