Benefits of refinancing your loan vs renegotiation of your loan
What should you do with your loan?
As a borrower - you will continually see offers and specials popping up from lenders on your socials, tv, print, radio, and every page you visit online. They all want good quality clients to refinance to their books, but should you just ask for a discount from your existing lender?
Research published by PEXA - the electronic conveyancing platform that handles more than 99% of all property refinances nationally shows the following
Homeowners who switched to a new lender enjoy much bigger savings than those who renegotiate with the same lender. According to a survey of refinancers, the average annual savings were
Stayed with their lender? - $384
Those who moved to a new lender? - $1908
Reseach was conducted in June, at which point the RBA had just commenced rate increases, and we are seeing much bigger savings, and have seen bigger % saved on each of the deals we’ve done here.
Home loan refinancing activity has hit record levels. Borrowers refinanced a record $18.9 billion of home loans in August, according to new data from the Australian Bureau of Statistics.
That included $12.8 billion of owner-occupied loans (a record) and $6.1 billion of investment loans (the second-highest month on record).
This is music to our ears as it means that Aussie borrowers are making moves & planning to ensure they cushion the blow of the interest rate rises.
This should also provide comfort around the short-term property market, in the knowledge that borrowers are doing everything they can to keep their properties despite interest rates more than doubling.
