As a result of 2 interest rate cuts announced by the RBA late last year, the Australian Home Loan industry has experienced a boost in activity with significantly more inquiries received with respect to home loan refinance.
According to the Australian Bureau of Statistics the year to November 2011 has seen an increase in home loan refinance applications nationally of 17%.
Major industry players expect this trend to continue into 2012.
It is not only that variable rates have began to come down with more decreases expected, fixed rates are at historically low levels with numerous lenders now offering fixed home loans at rates under 6%.
The key driver for home loan refinance is the expectation of getting a cheaper home loan, access to more funding and an overall better home loan deal.
The currently experienced increase in refinancing may be indicative of a trend of homeowners choosing to stay put rather than upgrade. A recent RP Data report has suggested a massive increase in the time homes are staying on market for many capital city council areas, and Mortgage Choice spokesperson Belinda Williamson said homeowners will have to weigh carefully whether upgrading is feasible in a stagnant housing market.
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