Mortgage holders looking to refinance doubles in two years: RateCity

Mortgage holders looking to refinance doubles in two years: RateCity
Mortgage holders looking to refinance doubles in two years: RateCity

Some 43 per cent of mortgage holders are looking to refinance in light of COVID-19 and record low rates, according to a new survey from RateCity.com.au.

By comparison, a 2018 RateCity survey found just 19 per cent of borrowers were looking to refinance, following the Banking Royal Commission.

RateCity.com.au analysis of RBA data estimates that existing owner occupiers are paying over one per cent more than the lowest variable rate in market.

Sally Tindall, research director at RateCity.com.au, said the loyalty tax gets worse the longer you stick with your bank.

“It’s taken a pandemic to get people to shift their mindset, but hopefully we’ll come out of it more budget-conscious and less complacent towards our mortgages,” Tindall said.

“People won’t just tolerate overpaying anymore.

“The banks are pulling out all the stops too, putting some of the biggest cash back offers and rock-bottom rates on the table and adding more flexibility on fixed rate loans to attract new business – and it is working.

“The latest figures from the ABS for May showed refinancing increased 63 per cent compared to last year, and our research suggests it is not losing steam. 

“The best way you can get a rate cut is to turn yourself into a new customer and switch. If you aren’t in a position to refinance, pick up the phone and try some old-fashioned haggling with your bank,” she said.

Tags: 
Mortgage Rate Refinancing

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