What’s been going down in Mortgage land of late, you ask?! Refinancing. That’s what. According to figures from the Australian Bureau of Statistics (ABS) Australians have collectively refinanced more than $20bn worth of loans!
With lots of people coming off fixed rates right now, it’s no surprise we’re experiencing an enormous amount of refinancing within the industry, as borrowers look to switch to lower-rate loans.
The latest ABS data has revealed that borrowers did $20.60 billion of refinancing in August, 2023 –3.9% lower than the month before but 12.4% higher than the year before.
Meanwhile, the ABS also revealed that the value of all new home loan commitments in August was $24.82 billion, 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%
FYI, the interest rate environment has changed a lot recently, and the level of competition in the mortgage market is fierce! For you, that means there are a lot of great refinancing deals available – including with quality smaller lenders you may be unfamiliar with.
