The price war between Australia’s lenders has failed to motivate borrowers to look for a better home loan deal.
According to a new survey conducted by Club Financial Services, approximately 82 per cent of respondents said they had not refinanced recently, and just 18 per cent said they had plans to refinance in the future.
“Usually when there is a change in the economic climate borrowers tend to look for ways to
ease their cash flow by refinancing their loans, but these results show that average
Australians are coping reasonably well,” Club Financial Services executive general manager Andrew Clouston said.
“When asked how they felt about their level of debt, 92 per cent of respondents with debt believed it was either comfortable or manageable and that monthly repayments could be factored into their household budget, which replicates our survey results from last year.”
Respondents were also asked directly whether their attitude to borrowing had changed in the past year, with 70 per cent confirming no change.
Changes noted by other respondents were all financially focussed approaches and included increasing loan payments, enlisting the services of a financial planner and consolidating loans.
“The results show that by and large, average Australians are conscious of keeping up with repayments and are financially aware,” Mr Clouston said.
“These are not high-fliers but prudent individuals who are careful not to over-commit themselves financially, which is a sound approach in the current climate.”