It is estimated that 30-40% of home loan applications are people interested in refinancing their mortgage.
More than two-thirds of people who refinanced their home loans recently were able to secure a lower interest rate, a mortgage broker’s survey shows.
Refinance at a Better Rate
The survey also found that 54% who refinanced changed their loan product and lender when refinancing, while 46% stuck with the same lender but changed their loan product.
68% of consumers who refinanced in the last 12 months were able to reduce the amount of interest paid. Of that 68%, 23% are now saving more than $300 a month, while 88% are saving more than $50 a month.
Of those surveyed, 24% said they were refinancing to switch to a cheaper loan, through a combination of lower interest rates, fees and charges, 11% said they were consolidating debts and 10% said they were funding renovations. Other motivations to home loan were buying an investment property (9%) and accessing additional funds for other reasons such as paying for a wedding or holiday.
The increase in those looking to refinance can largely be accredited to the trend of interest rates in the last year. From October 2009 to May 2010, the Reserve Bank of Australia (RBA) raised its cash rate six times, taking the rate from 3.25% to 4.5%. While economists say the RBA won’t hike interest rates in the next few months, most are predicting a rate rise by the end of the year or early next year.
Whether you want to refinance for a better interest rate on your mortgage, to reduce your monthly mortgage repayments or to make use of your home equity to give you access to money for things such as home renovations, investments or a wedding, we can help you find a new home loan to better meet your needs.
Refinance and find a home loan that suits you. Save yourself hours of mortgage research by telling us at the Australian Lending Centre what you’re looking for in a home loan and we’ll find the best refinancing options we have available. Call us today on 1300 138 188 or simply fill in an enquiry form to your right, and a refinancing consultant will contact you shortly.