June 17, 2011
The number of homeowners seeking to refinance their home loanto get a better deal has jumped by 5 percent in the first quarter of 2011. Refinancing now accounts for around one in every three home loans approved.
Spurred on by banks offering generous discounts on standard variable rates, and non-existent or negotiable exit fees, ABS figures reveal an extra 658 mortgage holders refinanced in March compared to the same time last year.
It’s clear borrowers are keen to get the best deal possible on their mortgage , but experts say the increase in refinancing also points to a rise in the numbers of householders battling mortgage stress as the cost of living soars.
The refinancing surge is also in part due to consumers being better informed about home loan products thanks to the ready availability of online research, including mortgage comparison sites which allow borrowers to research the best deal from the comfort of their office or lounge room.
State-by-state figures: home loans sold in March for refinancing
- Victoria had the greatest increase in refinanced home loans in March at 34 percent
- Queensland and Western Australia at 30 percent
- New South Wales at 29 percent
- Tasmania, the Northern Territory and the Australian Capital at 26 percent.
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