Home owners are still refinancing their mortgages, even as the property market remains flat, the latest Bankwest/MFAA Home Finance Index has shown. The Home Finance Index, which surveyed more than 1,139 respondents, revealed that one in four (24.7%) had refinanced their loan in the past two years and 14.2 per cent had refinanced in the previous year, an increase on the previous HFI.
Around 83 per cent of respondents thought it important to find out if a mortgage broker was a member of an industry body before using them to arrange a loan.
“Even with a flat property market, there’s plenty of work for brokers who are talking to their clients,” said MFAA chief executive Phil Naylor. “In times of economic uncertainty, people with mortgages are looking at ways to make their loans more affordable.”
Ian Rakhit, Bankwest Head of Specialist Banking said, “Brokers to continue to offer expertise convenience and above all else choice to the customer and are well positioned to take full advantage of this opportunity.”
The Home Finance Index showed that of those looking at borrowing or refinancing in the next three months, 45 per cent would be most likely to select a variable rate loan, similar to the last survey in January.
Fixed rate loans continued to be the lease popular option (16.3%), although it represented a slight increase on January (15.5%). Around one in five respondents (18.9) opted for a mixture of fixed and variable rate is the key, allowing them to enjoy benefits of both options.
Interest rates are by far the most important factor to consider when selecting a mortgage product (50.6%), far ahead of the next most important factor – fees and charges (15.5%). “Bankwest continues to be committed to the broker market and to offering products which brokers tell us is what they are looking for when discussing options with their customers,” said Mr Rakhit.