November 18, 2016
Recent days have proven that Australian homeowners are taking matters into their own hands when it comes to home loans. They have decided that they are not willing to wait any longer for the Reserve Bank of Australia (RBA) to make a rate cut.
This move reveals that homeowners have been watching the rates for some time in the hope of getting a better interest rate on their home loan. They may also be afraid that it may not drop any lower and are making the move to refinance their home loans now.
Although many people have waited for a better interest rate, their actions now show that they are tired of waiting. They know they may still be able to get a better deal and they are taking the appropriate action to refinance.
It seems that Australians are becoming more aware than ever that the Internet provides a means of making comparisons easier. They can stay at home and find out about rates anywhere in the country. This enables them to know when rates drop at any lender.
A number of banks now offer homeowners very low fees and costs for refinancing home loans. A few banks offer their loans with no upfront costs at all. The level of competition between lenders is also allowing homeowners to negotiate cheaper interest rates.
Homeowners are seeing these offers and seem to be saying, “Why not? and, “Why wait any longer?” As an example, if a homeowner has a $300,000 home loan for a 30-year period at an average rate, by switching to one of the best rates available right now, they could save as much as $80,000. In addition, it would only take three months to recover the costs of making the switch.
Data made available recently from the Australian Bureau of Statistics (ABS) also reveals that people want better rates and are refinancing for them. The ABS released data from August showing that there were 20,000 new loans taken out per month. Each of them was for the purpose of refinancing.
The vast number of people refinancing in Australia can be shown another way. Last year, the total number of refinances amounted to $72 billion. This year, which certainly is not over yet, already has a total of $84 billion.
The central bank has refused to lower rates for Australians. This refusal to lower rates is causing more people to be upset with the big four banks. Homeowners now know that they don’t have to wait to get a better deal.
Written by Refinancing.com.au
Refinancing.com.au is an end-to-end service that helps people refinance their home loan. We empower you to search for your home loan, and choose the process that suits you.
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