More and more Australians are looking for a better deal on their home loan, with October data from the ABS revealing that refinancing activity jumped by 17% over 12 months and 5% over three months.
With the RBA having since instigated back to back interest rate cuts, it is predicted that real estate activity will increase further in the coming months.
“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,” said Loan Market chief operating officer Dean Rushton.
He added that, while the effect of interest rate cuts on official ABS figures have yet to be seen, Loan Market’s own enquiries for refinancing had risen by 15% in the six weeks since the Melbourne Cup day rate drop – heralding a timely boost to the Australian property market.
“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,” said Rushton