Both the total number and total value of refinanced home loans hit a new high in May.
Finder analysis of recent ABS data reveals 33,712 Aussies refinanced their home loan in May, to the tune of $15.1 billion.
These figures were up $12 billion from April – the previous record.
Almost two third (64 per cent) of May’s refinanced loans involved a switch in lenders, suggesting many Australian home owners are shopping around for a better deal, as interest rates plummet.
Such consumer movement is in line with a drop in housing values.
“As budgets are stretched, a record number of people are deciding to get a better deal on their largest investment,” Graham Cooke, insights manager at Finder said.
“While the value of houses may well drop in the next year, the mortgages on them will not.
“Historically low interest rates and a lack of investor spending are a double whammy to banks, but a boon for mortgage holders.”
“With the cash rate at 0.25 per cent,” Mr Cooke explains, “the best home loan rates now start with a 2.
“If yours does not, it might be time to go home loan shopping.”