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New home owners most likely to refinance in 2012

The survey conducted by Galaxy Research on behalf of LJ Hooker Finance found that more than one in five (22 percent) of those active in the property market were looking to refinance their home loan in the near future.

New home owners most likely to refinance in 2012

Media Release – 20 February 2012

Research from LJ Hooker has shown that 46 percent of first home owners who entered the market less than two years ago are looking to refinance.

The survey conducted by Galaxy Research on behalf of LJ Hooker Finance found that more than one in five (22 percent) of those active in the property market were looking to refinance their home loan in the near future.

L.Janusz Hooker, Chief Executive of LJ Hooker said, “After the 2011 interest rate cuts, home owners are closely watching the market to see what will happen next.  Our research has shown that new home owners are concerned about interest rates and are very much aware that a spike in the cost of living could affect their home loan repayments.”

Of those planning to refinance their home loans, 20 percent cited interest rates as their primary concern, with a further 17 percent needing to refinance to consolidate their debts.

When asked about the management of their finances, only 28 percent of all home owners stated that they tracked spending through a strict budget.  Almost half (42 percent) claimed they were living within their means but felt that an unexpected large bill would put pressure on their finances.

“Although Australians are taking steps to ensure that they are meeting their financial commitments, new home owners are clearly feeling increased pressure to stay on top of bills and mortgage payments.” said Mr Hooker.

“A lot can happen to a family’s living and financial circumstances over two years.  New home owners should aim to meet with their broker or lender every 12 months to ensure that their loan product still suit their needs,” he said.

However, not all new home owners are worried about their financial future.  Almost one third, 32 percent, of those looking to refinance were hoping to purchase a second or investment property.

A further 14 percent of those looking to refinance believed that there were better home loan deals available.  Men were more likely to think that a better home loan product was on offer (58 percent) than women.

Mr Hooker said the Reserve Bank of Australia’s decision to hold the cash rate in February should encourage consumers to review their financial situation and plan for the year ahead.

As the bills roll in after the holiday period, it can be easy to lose sight of the bigger financial picture.  Booking a time to see your broker or lender early in the New Year will allow you to assess your current loan and help you to achieve your financial goals,” says Mr Hooker.

Key findings from LJ Hooker Research on refinancers:

  • 22 percent of those in the property market are actively looking to refinance their mortgage.
  • 20 percent fo those looking to refinance their mortgage are worried about interest rates.
  • 17 percent of those looking to refinance their mortgage want to consolidate their debts.
  • 32 percent of those looking to refinance their mortgage would like to buy another property/investment property.
  • Only 14 percent of those looking to refinance are doing it because they think they can get a better deal.

“Galaxy Research conducted on behalf of LJ Hooker Finance in September 2011.  The study was conducted among 1017 Australians, aged 18-64 years and over who were active in the property market.

To arrange an interview with Peter Bromley, LJ Hooker, Head of Finance or for further information, please contact:

Simone BergholcsJenni Ellard or Victoria Rooney
LJ Hooker CorporateIMPACT Communications
61 2 8303 703461 2 9519 5411

About LJ Hooker Finance

LJ Hooker Finance is a division of trusted real estate brand LJ Hooker; the only real estate agency to offer its own brand of home loan finance.  Established in 2005, LJ Hooker Finance is experienced in the non-bank mortgage market, with access to 20 lenders and over 300 loan products.  LJ Hooker Finance has a national network of brokers.

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