A quarter of Australians have engaged in mortgage refinancing over the past two years, according to the latest research.
The Home Finance Index, published by Bankwest and the Mortgage and Finance Association of Australia (MFAA), surveyed 1,139 respondents and found that in the past 12 months 14.2 per cent had refinanced.
“In times of economic uncertainty, people with mortgages are looking at ways to make their loans more affordable,” MFAA chief executive Phil Naylor explained.
Just over half of respondents felt that interest rates are the most important factor when finding a home loan.
The study also highlighted the value in using a mortgage broker, with Bankwest’s head of specialist banking Ian Rakhit commenting that “brokers do continue to offer expertise, convenience and above all else choice to the customer”.
However, the vast majority of respondents said it is important that a mortgage broker is a member of an industry body.
And variable rate home loans continue to be far more popular than fixed rate loans.
Nearly half (45 per cent) of those looking to take out a home loan or refinance in the next three months are more likely to select a variable loan, while only 16.3 per cent would choose a fixed rate loan.