Refinance records are toppling as mortgage holders seek out better deals to ease the household budget in the wake of COVID.
The latest ABS figures show 33,712 owners refinanced a record $15 billion worth of mortgages in the month of May, around a quarter higher than April and around 50% above normal levels, reports Business Insider.
Finder insights manager Graham Cook said mortgage holders were voting with their feet and seeking the best deal.
“As budgets are stretched, a record number of people are deciding to get a better deal on their largest investment,” Mr Cook said.
“Historically low interest rates and a lack of investor spending are a double whammy to banks, but a boon for mortgage holders.”
Not surprisingly the value of new lending also hit a historic low as lockdown restrictions saw buyers and sellers retreat to the sidelines.
All of this means great news for buyers and existing mortgage holders.
“…it’s seen banks take the unusual step of cutting their home loan rates out of cycle with the Reserve Bank of Australia,” reports Business Insider.
“UBank, Macquarie Bank and AMP all cut their home loan rates last week, despite the RBA holding firm.”