Aussies refinancing in droves
A record number of homeowners are rushing to refinance their mortgages, nervous about when rates will up their rates again.
In just two months we’ve seen the Reserve Bank of Australia (RBA) increase the cash rate from a record-low 0.10% to 0.85%, and it hasn’t taken long for most lenders to pass those rate increases on to customers.
Unfortunately, the RBA has warned that more rate hikes are on the way, which might have left you feeling at your lender’s mercy.
If these rising interest rates have you feeling a little vulnerable, then you might want to consider what tens of thousands of mortgage holders around the country did in May: refinancing or asking their current lender for a better rate.
Homeowners are refinancing in droves. According to PEXA’s latest refinancing insights, refinancing increased by more than 20% in May (from April) across each of Australia’s four most populous states.
NSW: 10,838 refinances. That’s up 20.8% on April, and up 15.6% year on year.
VIC: 11,500 refinances. May up 26.7% on April, and up 23.3% year on year.
QLD: 6,699 refinances. May up 21.8% on April, and up 49.6% year on year.
WA: 3,244 refinances. May up 25% on April, and up 46.1% year on year.
So just because rates are going up, doesn’t mean you can’t scope out a better deal.
The other big reason for the recent surge in refinancing is that smaller lenders are stealing more and more borrowers away from the major banks with super-competitive rates.
So why should you work with a broker? Well, brokers are currently writing 70% of all new home loans in the country – the biggest market share ever.
And as you know, brokers are loyal to you, not to any particular lender.
That means that if we think you can get a better deal, we’ll encourage and help you to do so.
So if you’d like to find out more about what options are available to you, get in touch with us today.
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