Lendi Group consumer sentiment survey conducted in the lead up to the May’s RBA decision reveals 25% or one in every four mortgage holders are waiting on RBA monetary decisions before they decide to refinance.
Undertaken during April with over 1000 homeowners who had lived through all 13 RBA interest rate rises since May 2022, a quarter admitted refinancing and revisiting their mortgage was aligned with RBA decisions and ‘on hold’.
As the Reserve Bank of Australia (RBA) continues to deliberate on interest rates, Lendi Group CEO David Hyman has urged homeowners across the nation “not to time the market and wait for RBA movements before taking action on their home loan.”
“Waiting for RBA decisions to consider home loan adjustments can lead to missed opportunities and unnecessary financial strain.”
"While an important factor, major RBA monetary decisions shouldn't be the only factor driving your financial decisions right now, particularly when it comes to the largest debt many will face in their lifetime,” says David Hyman, Co-Founder & CEO of Lendi Group who also owns Aussie.
"Consumers have the power to review their current loan arrangements, negotiate with their lender, explore available options, and potentially secure more favourable terms; and that’s where a broker can step in.”
“Assessing your existing loan terms can uncover opportunities for refinancing or renegotiation, potentially leading to lower interest rates, lower repayments, reduced fees and better access to the right home loan product for your situation.”
This comes as ABS most recent Lending Indicators in March revealed, the average national interest rate for mortgage holders is currently 6.8%, with an average mortgage size of $624,000.
However, many lenders – including some who lowered rates just last month – are offering rates from 5.99 to 6.4%, allowing brokers to step in and help customers potentially claw back the last two rate rises.
“Based on these numbers, an average homeowner with a $624,000 loan who refinanced right now, could save around $300 every month,” says Mr Hyman.
About Lendi Group
Lendi Group is Australia’s number one destination for property, home to Australia's number one home loan platform, a network of over 1,300 brokers across Aussie and Lendi, a loan book in excess of nearly $100 billion and a retail footprint of more than 230 Aussie stores across the country.