Mortgage Holders Switching Lenders

Posted on February 24th, 2014 · Posted in News

Home loan customers have developed the itch to switch jumping lenders more frequently.

Historically-low interest rates, intense competition in the mortgage market and continuous pricing discounts has resulted in customers refinancing their loan every three to four years.

In 2009 the average life of a loan was seven years but that’s now been cut almost in half as customers continue to get hungrier than ever to score better deals.

Australian Bureau of Statistics data found the number of refinanced home loans had continued to grow at a steady pace since January 2010.  The number of home loans refinanced has almost doubled from about 9200 home loans in January 2010 and 16,500 in December 2013.

Since the banning of mortgage exit frees in July 2011 the proportion of refinanced home loans has averaged 33% compared to 29% to the reforms kicking in.  ABS data also found at the end of 2013 the average home loan size was $322,000 compared to $274,000 five years ago.

There are many reasons to refinance your loans.  Think about staying ahead with your home loan(s) and with the current low interest rate environment it may help you pay them off faster.  Focus on paying down mortgage debt and if refinancing will help you, let us assist by Strengthening Your Financial Future.  Contact us today for a FREE finance review.

 

 

 

Original Story Source :: news.com.au