The best home loan rates on offer: finder.com.au
Australians are becoming more savvy with saving money on their home loans, with the number of mortgage customers opting to refinance their loans at an all-time high, according to new analysis by the comparison website finder.com.au.
The finder.com.au analysis of the latest Australian Bureau of Statistics (ABS) Housing Finance data reveals that almost 22,000 Australians refinanced their mortgages in December 2015.
Bessie Hassan, Consumer Advocate at finder.com.au, says that trend is expected to continue as customers rush to take advantage of historically low interest rates.
“In fact, the total value of refinanced home loans is forecasted to reach $100 billion this year, an increase from the record $77 billion in 2015, according to finder.com.au research.
“With signs pointing to a rate rise in the near future, now is a great time for homeowners to consider refinancing. As it stands, the cash rate is at a historical low and providers are offering among the lowest rates ever seen – borrowers can potentially save thousands of dollars per year by making the switch to a better deal.
“For example, the 21,896 Australians who refinanced their home loans last December collectively would have saved about $148 million in interest by fixing their mortgage for three years at a cheaper rate,” says Ms Hassan.
That’s based on a $354,614 average 30-year home loan refinanced from the current 5.11% standard variable rate (SVR) to the average 3-year fixed rate at 4.59%, assuming a return to the current SVR after three years.
“That’s an impressive $6,771 saving per homeowner over the fixed period of the loan,” says Ms Hassan.
The number of home loans being refinanced has surged by 20 percent in the past twelve months compared to December 2014 (18,183 refinances in December 2014 vs 21,896 refinances in December 2015).
Further to this, interest in finder.com.au’s refinancing home loans hub has skyrocketed 331% in the past month, compared to the same period last year.
“This indicates that low interest rates and money savings are top of mind for borrowers – which is the way it should be,” says Hassan.
“As with any major financial decision, shop around, because rates and fees can vary significantly between lenders.
“If you’d prefer to stick with your current lender, get in touch with the customer retention team and try to negotiate a better rate.
“Remember, there could be huge financial rewards to be reaped, but first you’ve got to do your homework.”
The top variable loans monitored by finder.com.au right now are:
The top 3-year fixed loans monitored by finder.com.au right now are:
