Time to refinance? New data shows refinancing outpaces purchases
More home owners are taking out home loans to refinance their current property than to purchase a new one, new figures show.
Loan data from Aussie Home Loans shows refinancing has surpassed purchasing in owner-occupied housing finance. The data for the 2016 financial year to date shows 28.5% of home loans are provided for owner-occupiers to refinance, compared to 25% for owner-occupier property purchases.
“We welcome the very strong growth we’re seeing in refinancing as it reflects the awareness amongst borrowers that they can find a better deal if they get expert help. We haven’t seen refinance outpace purchase like this for over four years,” Aussie chief executive James Symond said.
Symond said the growth in refinancing demonstrated “red hot competition” in the home loan market.
“Lenders are fighting for market share with some offering attractive incentives to get customers to switch their home loan,” he said.
Along with the uptick in refinancing, Symond said the mortgage broking franchise has seen a tapering off of investment purchase and refinance, while renovation and first home buyer purchases remained relatively flat.
Time to refinance?
With refinancing on the rise, it could be a perfect time to see if you can get a better deal on your home loan. Check out our step-by-step guide to refinancing.