The December quarter figures of Aussie Home Loans show a 10 per cent drop from the same time last year in the number of new home loans and refinance activity by investors, following the well-publicised restrictions placed on investor lending last year.
The slack has been more than taken up by a 6.5 per cent rise in first home owner purchases and an astonishing 27.6 per cent rise in owner-occupiers refinancing their mortgages in the December quarter.
Chief Executive of Aussie, Mr James Symond, said “We expect the refinancing and owner-occupier purchases to continue to grow in 2016 as borrowers become more confident that the current historically low interest rate conditions will continue well into the year.
“Borrowers are getting the message that now is the right time to save money on their mortgage repayments through refinancing, with many continuing to make payments at higher levels to get ahead on their mortgage,” he concluded.
Many home owners are saving an average of 0.71 per cent on their home loan interest rates when they refinance, according to data from Aussie*.
Mr Symond 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.
Based on Aussie’s average refinance loan size of $525,331, the average 0.71 per cent rate saving equates to $240 on monthly repayments on a 30 year loan.
Refinancers in NSW are making the most of refinance savings with an average 0.75 per cent reduction, followed closely by Queenslanders saving an average 0.73 per cent on their home loan interest rate.
Aussie has more than 1,000 mortgage brokers across the country ready to help customers get a free, expert second opinion on their home loan. To book an obligation free appointment, call 13 13 33 or click here to book.