Refinancing activity will run hot in 2011, a national survey has found.
According to a recent poll by Loan Market Group, 54 per cent of mortgage brokers believe refinancing will dominate the home finance market this year.
Loan Market chief operating officer Dean Rushton said of the 137 brokers surveyed, 39 per cent thought investors would be the dominant force in 2011, while just 6 per cent believed first home buyers would be most active and just 1 per cent thought finance for construction/renovation would surge.
“Our brokers clearly don’t see any re-emergence of first home buyers, who were highly active during late 2008 and 2009 while there were greater government incentives on offer,” Mr Rushton said.
He said the decision by the RBA to buck international financial trends and lift official interest rates up to 4.75 per cent during 2010 plus moves to make it easier to switch banks was influencing home owners.
“Australians traditionally are reluctant to change lenders but events of the past 12 months have changed their outlook,” he said.
“Home owners on an average $300,000 mortgage can save up to $3,000 a year if they can be bothered switching lenders to get a better home loan deals.
“There can be as much as a percentage point difference between the variable home mortgage rates currently on offer and people are starting to realise it’s worth shopping around.”