Refinancing activity has topped $20bn in August as revealed by the latest Australian Bureau of Statistics (ABS). It is 3.9% lower than the month before but 12.4% higher than the year before.
One major contributing factor to the rise of refinancing activity is due to lots of people coming off fixed rates right now. With this in mind, it’s no surprise that an enormous amount of refinancing is occurring, as borrowers look to switch to lower-rate loans.
Meanwhile, the ABS also revealed that the value of all new home loan commitments in August was $24.82 billion, which was 2.2% higher than the month before.
Owner-occupier borrowing rose 2.6% to $16.07 billion, while investor borrowing rose 1.6% to $8.75 billion.
That said, home loan activity has fallen on a year-on-year basis:
- Total borrowing down 9.4%
- Owner-occupier down 12.5%
- Investor down 3.0%
The interest rate environment has changed a lot recently, and the level of competition in the mortgage market is fierce, so there are a lot of great refinancing deals available – including with quality smaller lenders you may be unfamiliar with.
As refinancing topped $20bn and if you are coming off your fixed rates soon, it is worth it to consider refinancing to take advantage of better deals and lower interest rates. I can take a look at your existing loan and situation, compare the market, and potentially present some options that may save you money. Contact us to book an appointment.