Survey finds over a third of Australian mortgage holders have never refinanced

Survey finds over a third of Australian mortgage holders have never refinanced
Survey finds over a third of Australian mortgage holders have never refinanced

A survey from mortgage broker iSelect has found more than 34 percent of Australian households with a mortgage have never had refinance.

The survey, from Galaxy Research, found 56 percent of respondents who have not refinanced their home loan in the last ten years (or never) haven't done it because of a to perceived cost, lack of knowledge or hassle.

Laura Crowden, iSelect spokesperson, said research shows of those who refinanced in the last 10 years, 55 percent said the main benefit was lower repayments, 21 percent valued better features (such as an offset account or lower fees) and just 2 percent experienced no benefit whatsoever.

“Many home owners underestimate the savings that could be gained by switching to a new loan with a lower interest rate,” Laura said.

“Switching to an interest rate even just a few basis points lower can not only reduce repayments but potentially shave years off the length of the loan as well.

"For example, for a home owner with a $300,000 mortgage currently paying 5.25 percent, moving to a lower interest rate of 3.75 percent could save up to $267 in interest every month and more than $96,000 over the lifetime of the loan.

“Homeowners should act now to take advantage of the increased competition amongst banks and financial intuitions who are competing heavily for new customers with generous introductory rates.

“Whenever there is an RBA rate change, this should be a reminder to review your options and consult a home loan adviser to discuss your options.

"They will be able to talk you through all the financial jargon and find out whether a loan may offer a rate or features better suited to your lifestyle and budget."

Tags: 
Mortgage Brokers Refinance

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