Rush to refinance
Almost 40 per cent of mortgages arranged in February this year were for refinancing purposes, according to mortgage broker AFG, which may be further evidence that interest rates are hurting Australians.
Fixed rate loans accounted for more than one-quarter of new mortgages last month, which is less than the record high of 27.3 per cent recorded in November, 2007.
Commenting on the figures, AFG director Kevin Matthews said the effects of the long succession of rate rises is becoming increasingly evident.
“People with loans are seeking assistance in weathering the storm by refinancing or locking rates.”
In the past, lower and middle property markets were those worst affected by rate rises, but Matthews believes this is beginning to change.
“Now we’re also beginning to see investors, who have such an important role to play in sustaining the private rental market, becoming wary.
“With [vacancy] rates at an all time low in many areas, this may well be a side effect of fiscal policy that needs to be closely monitored in the short term,” he said.
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