More than half a million switch lenders

New statistics have revealed that for the past three years, more than half a million borrowers have left their lender for a better home loan deal, according to the Australian Bureau of Statistics (ABS) and finder.com.au.

Looking at the past three years, from June 2010 to July 2013, 560,965 borrowers moved from their lender - this works out as one in five households since June 2010. 

During July 2013, the highest number of loans were refinanced since April 2008 at the height of the GFC, with 18,056 recorded by the ABS.

Spokesperson at finder.com.au, Michelle Hutchison, said dissatisfaction with lenders does not come as a surprise.

"You'd think most borrowers would sit back and enjoy their extra savings coming in from lower interest rates, but this isn't the case," Hutchison said.

With eight cash rate cuts since November 2011, a total of 2.25%, comparing a 7.5% and 5.5% rate over a 30-year term on a typical $300,000 loan it equates to $400 less in repayments.

"With mortgage season now in full swing, it's a great time to refinance if you're in the right position to do so. This is the busiest time of year for lenders and they are competing harder for new customers, so it's worth checking what's out there and finding out how much you can save," she said.

If you're choosing whether or not to refinance, finder.com.au has a number of suggestions

Refinance if:

You have more than 20% equity - so you won't have to pay lenders mortgage insurance

You have a variable interest rate

You found a better home loan with lower rates and/or fees

Your loan was opened after July 1, 2011 so you won't be charged early exit fees (these were banned from this date)

The charges for exiting your old loan and starting a new one will be recouped within the first 2 years

Don't refinance if:

You have less than 20% equity - otherwise you will have to pay lenders mortgage insurance again

You have a fixed interest rate - most come with hefty break costs

Your loan was opened before July 1, 2011 - you may be charged hefty early exit fees

The charges for exiting your old loan and starting a new one won't be recouped within the first 2 years