Disgruntled Victorian borrowers lead national surge in mortgage refinancing: ABS

Victorian borrowers appear to be growing increasingly unhappy with their mortgage lenders, with borrowers in the state accounting for more than a quarter (28%) of all refinancing activity in Australia during the final three months of 2011, according to the latest data from ABS. 

In total over 14,100 Victorian borrowers refinanced their mortgages over this three-month period (totalling $3.6 billion), compared with 13,000 in the corresponding quarter in 2010 and 10,500 in last quarter of 2009. 

The surge in Victorian refinancing activity comes as part of a national increase in refinancing activity over this period, which soared to a record high of $12.6 billion (50,000 borrowers) in the final quarter of 2011, a 14% increase on $11.1 billion refinanced in the December quarter of 2010. 

There were also sharp increases in refinancing activity in NSW (up $4.3 billion from $3.7 billion) and Western Australia ($1.6 billion from $1.3 billion). 

A poll carried out by Property Observer found that 81% of borrowers will investigate the option of refinancing with a different lender following the recent interest rate increases made independently of the RBA. 

More than half (56%) of those polled said they’d changed lenders in the last six years.

Owner-occupier refinancing

Refinancing activity remained flat or fell in all the other states. 

On a seasonally adjusted basis refinancing rose by 2.3% in December 2011 after a fall of 0.9% in November 2011. 

The increase in refinancing activity comes as mortgage lending to owner-occupiers increased by just 0.7% in December 2011 with overall mortgage growth at its lowest level since statistics were recorded 35 years ago.

To learn more about refinancing, sign up for our free webinar. The webinar will take place on Wednesday, February 22 at 12.30pm.

{module What do you intend to do given the current interest rate fluctuations?}

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