Finder's Refinancing Report combines lending data with a survey of over 1,000 Australians who have recently refinanced their mortgage, or are planning to. This report seeks to better understand the behaviours and attitudes of the growing market of refinancers.
In late 2020 the Reserve Bank of Australia (RBA) lowered the the cash rate target to just 0.1%. This move spurred many Aussies to refinance to incredibly low interest rates. When the RBA began rapidly raising the cash rate in 2022, even more borrowers rushed to refinance as their home loans became more expensive.
The number of refinancers and the value of their loans has grown significantly.
In July 2019 just over half (52%) of refinancers were external refinancers, rather than internal refinancers getting a new loan from their current lender. By July 2023, almost three-quarters of refinancers (72%) were external refinancers.
A home loan is a gigantic debt. But a properly managed home loan with a reasonable rate and features that suit a borrower's needs is also an incredibly useful financial tool and a means for people to achieve a greater level of financial freedom. In the current environment of higher rates and inflation, refinancing has never been a more important decision.
Richard Whitten
Money editor
This suggests that even refinancing is not enough to fully relieve mortgage pressures in the face of a wider cost of living crunch.
Even after going through the home loan process at least once before, borrowers are in need of support and education when it comes to refinancing and finding the best deal.
Rebecca Pike
Senior writer, home loans
This is likely due to baby boomers buying when prices were lower, and having their loans for a longer time, allowing them to pay off more of their debt.
For homeowners, a proactive approach to financial management is paramount. Regularly reviewing and comparing home loan options ensures alignment with financial goals, while utilising digital platforms and comparison sites can simplify and demystify the refinancing process.
Graham Cooke
Money expert
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