The total value of the refinanced home loans exceeded $15.1 billion in May, as more Australians have refinanced their home loan than ever before, according to research from comparison site Finder.
This was up 26% from the previous high of $12 billion in April as Graham Cooke, Finder insights manager, said this showed more Australians were taking advantage.
“As budgets are stretched, a record number of people are deciding to get a better deal on their largest investment,” Cooke said.
“While the value of houses may well drop in the next year, the mortgages on them will not.
“Historically low interest rates and a lack of investor spending are a double whammy to banks, but a boon for mortgage holders.”
Cooke said Australians were shopping around and it was a good time to search for a lower rate.
“With the cash rate at 0.25%, the best home loan rates now start with a two. If yours does not, it might be time to go home loan shopping,” Cooke said.
“Additionally, now is a good time to ask for your bank to go the extra mile. Several lenders are offering to waive fees for new borrowers, and some are even offering extras like offset accounts at no additional cost.”
External loans reached 21,473 (switching lenders) and internal loans reached 12,239 (customers who received a better rate from their current lender).
Number of home loans refinanced July 2019 – May 2020