The number of Aussie borrowers refinancing their mortgages rose significantly in June, amid a decline in total loan volume and value, according to mortgage broker AFG.
Loans arranged by AFG fell to 6,690 from 7,635 in May. With homeowners taking advantage of lower interest rates offered, refinancing rose to 39.1 percent from 35.8 percent in the previous month.
Mark Hewitt, General Manager, Sales and Operations at AFG, said that the competitive market encouraged borrowers to secure better mortgage deals, leading to a good month for refinancing.
AFG also noted that demand for fixed-rate mortgages dropped to its lowest level since September 2011.
Following a high of 25.4 percent in March, borrowers applying for fixed-rate mortgages dropped steadily to reach 16.5 percent in June.
“It’s significant that, as we begin a new financial year, the vast majority of borrowers are opting not to lock in an interest rate. Most see a period of stable or even softer rates for the foreseeable future,” added Hewitt.
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