Almost 22,000 Australians – an all-time high – refinanced their mortgages in December 2015, says the ABS. The value of refinanced home loans is expected to reach $100 billion this year, an increase from $77 billion in 2015.
Lenders are offering the lowest rates on record, but loyalty is costing borrowers because lenders are offering heavily discounted rates to new customers while excluding existing customers.
By shopping around, a simple change-over strategy, like fixing a standard variable 30-year, $350,000 loan to the average 3-year fixed rate of 4.59%, could save consumers about $6,700 over three years.
Several smaller banks and building societies have lower rates than the major lenders.