Close to half of Australians have never refinanced
Despite the potential for savings, we remain reluctant.
An Aussie Home Loans survey of more than 1,000 mortgage holders revealed 45% have never refinanced their home loan. Of the 53% who have refinanced, the average time since they sought out a better home loan rate was two-and-a-half years.
Those who hadn’t refinanced gave reasons including thinking they wouldn’t get a better deal (29%), not thinking about refinancing or not knowing where to start (18%) or believing the process would be too time consuming (17%).
“Our survey shows that many home owners could be missing out on great deals and potentially big savings. That’s money going to the banks and other lenders that Australians could instead be investing back into their mortgages or spending on things like holidays, eating out or their kids’ education,” Aussie Home Loans chief executive James Symond said.
The company said its data shows the average savings from refinancing is $240 a month, but the survey indicated 74% of respondents didn’t know how much money they could save.
“Over half said they would use the savings to pay down their mortgages, which is a smart strategy as these extra payments can mean big savings over time,” Symond said.
Internal research by finder.com.au has shown a 40% spike in customers looking to refinance immediately following the RBA’s decision to cut the official cash rate.
