Confusion eases mortgage churn
There are signs that churn in the mortgage market might be receding, with new research released by the Mortgage and Finance Association of Australia (MFAA) today revealing that the number of people looking to refinance their home loans is on the decline.
The results of the MFAA/BankWest Home Finance Index revealed that while rising interest rates had prompted many people to consider refinancing their homes, apathy was likely to mean they did not do so.
Commenting on the survey results, MFAA chief executive Phil Naylor said that nearly half of the respondents said they expected to refinance in the next three months as a result of the rate rises, but this might not happen due to a lack of information or fear.
“There is a level of apprehension amongst Australians,” he said. “Half the people surveyed who are experiencing mortgage stress are concerned they may not find an alternative due to low equity in their property.”
He said the survey had identified a level of confusion on the part of consumers, which had resulted in a reluctance to refinance, with 23.2 per cent of respondents regarding all lenders as the same and therefore seeing no point in making a move.
The survey also revealed that 13 per cent of respondents felt there were too many fees to consider when changing lenders.
AUTHOR
Mike Taylor
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