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Refinancing Stats Hit Record-High, Here’s Why

Refinancing Stats Hit Record-High, Here’s Why

Last July 2021, refinancing statistics reached record-breaking levels along with the plummeting of interest rates in Australia. In this post, we’ll take you through all factors why more Aussies are taking up loans and why you should think about it too.

The Australian Bureau of Statistics reported an all-time high on refinancing, as more people venture into home loans than ever. These latest figures got potential customers, and lending businesses shook as proof that these aren’t merely hearsay but actual facts.

In July, the total amount of refinanced home loans amounted to $17.2 billion, a sharp 6% increase from the last month. That’s also more than a 50% increase compared to refinancing amounts two years prior.

Why More Homeowners are Refinancing

One of the many reasons for this record-breaking trend is an all-time low RBA cash rate of 0.1%. That drives competition between banks to become fiercer than ever, leading some to offer their lowest loan rates to attract as many potential borrowers as possible.

Reports also show that customers under variable interest rates under 2% skyrocketed from 28 to 46 within two months. More borrowers are also choosing fixed rates, causing lenders to increase their 3-5 year fixed-rate mortgages to leverage the rising demand.

Another possible factor that drives the refinancing figures is the COVID-19 pandemic. More households are barely making it through challenging financial situations. That’s why many consider refinancing to offset their monthly mortgage repayments.

How Plan A Mortgage Can Help You Refinance

While fixed and variable rates sound appealing, especially with cashback and new customer deals, they may not be suitable for you in the long run. You may even end up spending more with loyalty tax and other hidden fees.

That’s why our mortgage brokers at Plan A Mortgage got your back covered. We’ll take you through all the fees, processes, and pros/cons for all of your loan options, depending on your current financial position.

You can also discuss your refinancing plans with us to help you decide whether a variable, fixed, or split loan will work best for your needs.

Aside from that, we can help you get better rates by negotiating with the right lender. Simply applying for a loan and signing all agreements won’t land you a lower rate – you have to ask and negotiate for it.

Reach out to us today, and we’ll take care of the heavy work for you and potentially save thousands of dollars in the long term from interest charges. Call us, and we’ll let you know how we can help.

Disclaimer

This article presents content in a general nature and is solely for informative purposes only. It does not aim to provide public nor personal financial or tax advice. It does not include nor put into consideration your unique situation or circumstances. Before taking an active decision, seek expert advice and thoroughly examine your current position. Moreover, this article is protected by intellectual property and copyright laws and should not be reproduced without prior written consent.

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