Sydney home owners are savvy loan borrowers who are not afraid to refinance for a better deal, new research has revealed.
According to a new survey of more than 30,000 home owners, 80 per cent of Sydney borrowers know their home loan rate, 76 per cent know what fees they pay and 85 per cent think refinancing could reduce their costs further.
HSBC head of mortgages Alice Del Vecchio said Sydney’s higher average dwelling price of $504,500 compared to the national average of $443,000 is the likely driver for Sydney borrowers’ high home loan awareness.
“Having a larger financial commitment means home loan rate payments and fees are front of mind for Sydney borrowers. Being more sensitive to interest rate changes, Sydney borrowers clearly see the benefit of shopping around for their home loan,” Ms Del Vecchio said.
Although Sydney borrowers' refinance awareness is higher relative to Melbourne (85 per cent versus 26 per cent believing they can save money) the survey shows there are still pockets of customers in both cities missing possible savings by failing to explore refinancing.
Ms Del Vecchio said the lack of awareness amongst these groups towards refinancing could stem from a perception that it involved paperwork, research and additional costs.
“Customers don’t seem to realise that now is an optimal time to consider refinancing. It is a highly competitive lending environment right now and banks are working really hard to win borrowers’ business.”