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Homeowners are still refinancing in record numbers: are you one of them?

refinancingWith interest rates still at record low levels, it’s not surprising we’re assisting record numbers of clients with their refinances. (It might also have something to do with the fact that you’ve all been at home for a few months and had some time to slowly work through those ‘jobs’ we tend to put off doing!) 

Data released by the ABS last month confirms that we’re not just imagining things. Refinanced home loans reached an all-time high of $17.2 billion in July, reflecting a 6% increase on June.

It’s also more than double the value that was refinanced exactly two years prior in July 2019.

 

So why are homeowners refinancing in record numbers?

For starters, interest rates are still at an all-time low.

Competition amongst lenders is still fierce, with cash incentives (i.e. refinance rebates) still being offered to entice borrowers to make a switch.

“Borrowers are seeking out lower interest rates, particularly for fixed-rate loans…” says ABS head of Finance and Wealth, Katherine Keenan. This echoes many of the conversations we’re been having with clients over the last few months too.

National refinance numbers are also likely to reflect a ‘COVID-19 effect’ – with many households looking to find ways to ease their financial pressure by reducing their monthly mortgage repayments with a refinance.

 

How we help you refinance the right way

Whilst you may have seen some attractive rates and cashback offers available, it’s important you look at the bigger picture to ensure the loan product/ structure is actually suitable for you.

Especially if you’re considering locking in a fixed rate (where you’ll be committed to a specific lender for at least the fixed rate loan term).

That’s where we can help!

We’ll help you examine the fine print, fees and limitations to ensure the switch is worth it.

We can also help you determine whether a fixed, variable or split loan is best suited to your needs.

We also happen to be great at negotiating variable rate discounts to ensure you’re not paying more interest than you need to.

If you haven’t reviewed your loans over the past few years, here’s your prompt to do it now.

Get in touch with us today to see how much you could be saving.

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