According to PEXA's Monthly Settlement & Mortgage Insights report, more than 10,500 refinances were recorded in New South Wales in May, the highest number the state has seen since December 2021.

Victoria saw 11,500 refinances recorded in May, while Queensland and Western Australia saw over 6,500 and 3,000 refinances respectively. 

Catherine Mapusua, head of lending at digital lending and payments provider WLTH, explains refinancing is set to rise in the next coming months with further increases on the horizon off the back of RBA cash rate rises.

"The amount of owners looking to refinance their home loans over the next coming months is expected to increase significantly," Ms Mapusua told Savings.com.au. 

“It is also anticipated that lenders will be looking to offer competitive rates in order to acquire more market share. 

“As more owners become aware of their interest rates rising and repayments increasing, it is likely they will be on the lookout for better deals.”

Major banks vs non-major banks trends in refinancing per state

PEXA data revealed that non-major banks grew their net refinance positions in May 2022, whereas major banks saw a decline in net refinanced loans.

This excludes WA which saw non major banks record a decrease in their net refinance positions while major banks recorded an increase.

New South Wales

  • Major banks lost a net 1,848 refinances in May from April
  • Non-major banks gained 1,778 refinances compared to 1,643 from April 

Queensland

  • Major banks lost a net 1,355 refinances in May compared to April
  • Non-major banks gained 1,314 refinances compared to 1,096 in April

Victoria

  • Major banks lost a net 1,857 refinances in May compared to April
  • Non-major banks gained 1,784 refinances compared to 1,442 in April

Western Australia

  • Major banks grew their net refinanced loans to sit at -186 which is up from -233 in April 
  • Non-major banks saw their net refinances shrink slightly to 175 from 214 in the previous month

“Non-major banks are continuing to grow their net refinance positions simply due to the fact that they are offering more competitive and innovative products,” Ms Mapusua said.

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
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Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

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