Sydneysiders the savviest mortgage refinancers: HSBC

Sydney property owners are the savviest of home loan borrowers and know refinancing can provide better rates and fees, according to a recent HSBC survey.

Polling more than 30,000 Sydney and Melbourne respondents, the survey suggested 80% of Sydney borrowers know their home loan rate, 76% know what fees they pay and 85% think refinancing could reduce their costs further.

Alice Del Vecchio, the head of mortgages for HSBC Bank Australia, says Sydney’s higher average dwelling price of $504,500 compared to the national average of $443,000 was the likely driver for Sydney’s heightened awareness.

“Having a larger financial commitment means home loan rate payments and fees are front of mind for Sydney borrowers,” Del Vecchio says.

“Being more sensitive to interest rate changes, Sydney borrowers clearly see the benefit of shopping around for their home loan.”

Although Sydney borrowers' refinance awareness was higher relative to Melbourne – 85% versus 26% believing they can save money – the survey showed there are still pockets of customers in both cities missing possible savings by failing to explore refinancing.

In Melbourne 60% of borrowers know their rate and 25% know what fees they are paying.

Del Vecchio says the lack of awareness towards refinancing could stem from a perception that it involved paperwork, research and additional costs.

“Customers don’t seem to realise that now is an optimal time to consider refinancing.

“It is a highly competitive lending environment right now and banks are working really hard to win borrowers’ business.”