2011: the year of refinancing

2011: the year of refinancing

05 January 2011 by Staff Reporter 0 comments

Staff Reporter

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.”

Staff Reporter

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.”

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?