"With interest rates on the rise, it's expected that people will be searching high and low for the best deals." - Alexandra Kenward, Finance Manager
The monthly settlement and mortgage insights report from PEXA has revealed May 2022 as a record month for refinancing home loans.
Victoria saw 11,500 refinances recorded in May, while Queensland and Western Australia saw over 6,500 and 3,000 refinances respectively.
Catherine Mapusua, head of lending at digital lending and payments provider WLTH, explains refinancing is set to rise in the next coming months with further increases on the horizon off the back of RBA cash rate rises.
"The amount of owners looking to refinance their home loans over the next coming months is expected to increase significantly," Ms Mapusua told Savings.com.au.
“It is also anticipated that lenders will be looking to offer competitive rates in order to acquire more market share.
“As more owners become aware of their interest rates rising and repayments increasing, it is likely they will be on the lookout for better deals.”
PEXA data revealed that non-major banks grew their net refinance positions in May 2022, whereas major banks saw a decline in net refinanced loans.
This excludes WA which saw non major banks record a decrease in their net refinance positions while major banks recorded an increase.
“Non-major banks are continuing to grow their net refinance positions simply due to the fact that they are offering more competitive and innovative products,” Ms Mapusua said.
Dervisevic, H. (2022, June 14). Non-major banks are winning the mortgage refinancing game. Savings.com.au. https://www.savings.com.au/home-loans/property-refinancing-volumes-increase-may-2022