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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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
