Refinancing increases by 35%
Who’s your home loan with?
Have you considered changing lenders recently?
Well you’re not the only one.
The latest JP Morgan Australian Mortgage Industry report found that the number of people looking to refinance has continuously increased since early 2015, rising from 10 per cent to almost 35 per cent of the market.
Coronis Financial Services Manager Tyson James said more home owners and investors were refinancing their properties now to unlock value and access equity that has now been regained since the GFC losses.
“The competition between lenders at the moment is at an all-time high so it makes sense for home owners to investigate their options, especially as they can now access equity for a renovation or their next property purchase without potentially paying Lenders Mortgage Insurance (LMI),” Mr James said.
“At the moment, we’re refinancing a lot of clients who want to stay with their current bank, and who also want to switch to one of the big four banks.
“Across the market, there are a lot of interest rates currently sitting below four per cent, cashback offers and discounted fees so home owners need to shop around, just as you would for a new car.
“For example, the Commonwealth Bank currently have a $1500 Refinance Cashback offer available until 30 April 2016 for customers who refinance their home or investment loan (conditions apply).
“Smaller lenders are also competitively marketing their products such as Suncorp who have a variable interest rate of 3.99 per cent on offer (standard rate is 4.34%).
“With so many new offers being announced and old offers expiring on a weekly basis, home owners should really investigate using the services of a mortgage broker.
“At Coronis, our mortgage brokers assess a client’s whole financial situation and find the best possible solutions from a range of more than 40 lenders.
“Not only will they save you time, but they will provide you with an expert opinion and validated research that will help you make an educated decision for you and your family.”