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Refinancing activity has surged in three states, indicating a boost in activity among savvy property owners, according to the latest market report by digital property settlement platform PEXA.
The report showed that in June 2021, there were 11,000 refinances in New South Wales and 5,000 in Queensland. Both states recorded two-year record highs for volumes of refinances settled within a month.
Meanwhile, Victoria recorded the most refinances of any other state with more than 106,000 during the 2020-2021 financial year, surpassing New South Wales' 101,000 and Queensland's 48,000.
However, the number of refinance settlements in Victoria during the financial year was actually 4% lower. This was in contrast to the 15% gain in New South Wales and 12% increase in Queensland.
Mike Gill, senior research manager at PEXA, said refinancing activity has remained elevated since spiking in June 2020 that followed a double rate cut.
"The recent records set in June 2021 within New South Wales and Queensland coincide with public commentary of a potential interest rate rise sooner than previously forecast by the Reserve Bank. These numbers suggest consumers may be wanting to lock in the best deal possible before any upward movement," he said.
The report also uncovered the shifting trend among major and non-major banks. Prior to the onset of the COVID-19 restrictions in March last year, non-majors held a dominant position for refinances across all eastern states. This changed during the national lockdown, with major banks moving into the stronger position. As of recently, however, non-majors are starting to reclaim their market share.
