More owner-occupiers are refinancing their mortgages than purchasing properties across Australia, according to figures from the country’s leading mortgage broker, Aussie Home Loans.
Aussie’s loan data for financial year 2016 to date shows 28.5 per cent of home loans are now provided for refinancing by owner-occupiers, compared with 25 per cent for owner occupier property purchases.
Chief Executive of Aussie, Mr James Symond, said “We welcome the very strong growth we’re seeing in refinancing as it reflects the awareness amongst borrowers that they can find a better deal if they get expert help. We haven’t seen refinance outpace purchase like this for over four years.
“With rates at the current historic lows, borrowers are getting the message that now is the right time to look at whether they can save money on their mortgage repayments through refinancing”, he said.
Aussie continues to post a record number of settlements across the board, with customer enquiries now at the highest levels in the mortgage broker’s 24-year history.
Mr Symond concluded “The growth in refinancing is also a symptom of the red hot competition in the market. Lenders are fighting for market share with some offering attractive incentives to get customers to switch their home loan.
“Alongside this growth in refinancing, we have seen a tapering off of investment purchase and refinance, while renovation and first home buyer purchase is relatively flat on last financial year,” he concluded.
The mortgage broking industry continues to grow its share of the market as borrowers seek experts to help them navigate the increasingly complex lending landscape at no cost to them.