“There is a boom unfolding in the number of home loan customers refinancing at lower interest rates as banks fight to take business from rivals.” SMH 2/4/16
The boom comes after banks last year began to aggressively target owner-occupiers with lower interest rates and other perks, after the banking regulator clamped down on lending to property investors.
The Sydney Morning Herald says the number of loans for refinancing has overtaken loans for new purchases of properties for the first time in four years.
Latest figures from the Australian Bureau of Statistics show the share of owner-occupied loan approvals for refinancing hit previous record highs of 36% in January, up from 32% in early 2015.
The number of home loan approvals for refinancing in January was 22% higher than a year earlier, compared with a 7% rise in all loan approvals.
Mortgage brokers are also playing a bigger role in the market, arranging more than 50% of all new home loans, and the industry argues this is stimulating competition.
Read article here: SMH Article