The number of borrowers refinancing has increased significantly over the past 12 months, new data from Loan Market Group has revealed.
The latest official home loan approval figures for October 2011 from the Australian Bureau of Statistics show a 17 per cent rise in refinancing activity compared to the year ending October 2010.
Loan Market chief operating officer Dean Rushton said refinancing was also up 5 per cent nationwide on the previous quarter.
"With the broader credit market bottoming out at a 10 year low this past year, it's refinancing which has kept the market from plunging into much lower levels," he said.
"With many analysts predicting interest rates to continue on a downward cycle, we should see the sustained growth in the refinance market as well as the return of first home buyers and upgraders in the New Year."
Mr Rushton said Loan Market's own enquiries for refinancing had risen 15 per cent in the six weeks since the Reserve Bank lowered the cash rate on Melbourne Cup day.
"The RBA rate cuts in November and December have brought forward queries of those looking to refinance and also first home buyers, particularly in New South Wales," he said.
"These latest ABS figures predate the back-to-back cuts in official interest rates so we will see the impact of those in the coming months."