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ISCOVER
Staff Reporter
Refinancers have been the dominant market segment in 2013, new research has revealed.
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According to a poll of its own brokers, 1300HomeLoan found 59 per cent of respondents believe refinancing has been the major source of enquiry this year.
Of the 237 brokers, 29 per cent said they had most enquiries from first home buyers, while six per cent nominated investors as the most active sector.
Mr Kolenda said it was a healthy development to see more borrowers shopping around for a better home loan deal.
“Australians have traditionally been loyal to their banks, but since the GFC the lending landscape has changed dramatically and people are realising there can be a price to pay for loyalty,” Mr Kolenda said.
“In the current highly competitive lending environment there can be more than one per cent difference between variable mortgage rates on offer and similar variations with fixed rates.
“Home owners on an average $400,000 mortgage can save thousands of dollars a year if they can be bothered switching lenders to get a better home loan deal, so it is encouraging to see more borrowers looking to refinance.
“Borrowers are best advised though to speak to a professional about their home loan options and mortgage brokers have more insight as to what’s going on with the different lenders as well as the structures for any fees and charges.”
Mr Kolenda said almost a third of brokers surveyed had seen a surge of enquiry from first time buyers, who had gone quiet in the latter half of 2012 as a suite of state-based grants for that sector ended.
“First time buyers have been reluctant to dip their toe in the market despite the Reserve Bank of Australia regularly lowering interest rates during 2012,” he said.
“More rate reductions will be needed to entice first home buyers back.”
