• The place to find the right expertise and make better decisions
  • Find the right expertise

Blog

Homeowners refinancing in record-high numbers: explore your options

Tim Russell | July 23, 2020

Homeowners in record-high numbers are taking advantage of reduced interest rates and competitive refinancing offers. Are you ready to take the leap? 


When times are tough, the belt gets tightened.


And we’ve seen that play out across the country in a big way recently, with the number of Australian families who refinanced their mortgage in May the highest on record, according to the latest figures from the Australian Bureau of Statistics (ABS).


In fact, 33,712 Australians refinanced a whopping $15 billion worth of mortgages in May. To put that into context, before COVID-19 struck, that monthly figure floated around the $10 billion to $11 billion mark.


Anecdotally speaking, the recent 50% increase in refinancing sounds about right to us.


We’ve been flat chat over the past few months helping families refinance their home loans and save thousands of dollars in annual interest repayments.


Why are so many people refinancing?


First and foremost, the economic squeeze brought on by COVID-19 has made people stop and take stock of where they can make savings in their family budget.


And one possible way to do that is by refinancing, as Australian home loan rates have never been lower.


That’s because, on top of the Reserve Bank of Australia (RBA) dropping the cash rate to a record low, lenders are currently competing hard for your business by offering never seen before interest rates.


ABS Chief Economist Bruce Hockman further explains: “The value of existing owner-occupier loans refinanced with a different bank [in May] was by far the highest on record as borrowers responded to reduced interest rates and refinancing offers.”


So how much can you save by refinancing?


Well, that’ll depend on your individual circumstances and a number of other factors, including how big and old your loan is.


But to give you a lower-end-of-the-scale example, a recent RBA study found that for loans written four years ago, borrowers are charged an average of 40 basis points higher interest than new loans.


“For a loan balance of $250,000, this difference implies an extra $1,000 of interest payments per year,” explains the RBA.


And if your loan amount is higher than the above example – or if your loan is older – then there’s a decent chance that refinancing could save you even more than $1000 in interest payments each year.


What’s your next step?


That’s the easy part – get in touch today.


There’s a reason tens of thousands of families are currently refinancing their home loans: now’s a good time to do so as competition among lenders is running hot. And the longer you put it off, the longer you’ll keep paying your current rate.


So if you’d like to refinance your home loan, give us a call and we can run you through your options and get the ball rolling.


Kind regards,


Tim Russell

About Me

Tim Russell

Current Rating: 4.92 / 5
Mortgage Broker
Multipart Finance
www.multipartfinance.com.au
North Sydney, New South Wales
0400530868
► Who is Multipart Finance?
▬▬▬▬▬▬▬▬▬▬▬▬▬▬
Put Simply, We assist those who want to grow their wealth through property investment.

When it comes to being a wealth creator, our experience is that those that do, like to push the boundaries. And when you push the boundaries, there is generally a finance hurdle that needs to be overcome.

Our offering specialises in identifying that hurdle and solving it for our clients in the quickest and most stress free way possible.

► How we help can help you
▬▬▬▬▬▬▬▬▬▬▬▬▬
In this tough regulatory environment, what we have seen is an emergence of smaller funders who can do things that the big 4 can't. Whilst we still deal with the major banks on a daily basis, we have also aligned ourselves with lenders who have a niche offering we know the majors can't solve.

Bottom line, we'll either get you the best finance solution or we'll tell you why now's not the right time and provide a game plan for you on what you need to do in order to achieve your goal.

► Want to know more?
▬▬▬▬▬▬▬▬▬▬
Call: ✆ (0400) 530 868
Email: ✉ tim@multipartfinance.com.au
Visit: ☛ https://multipartfinance.com.au