Conveyancing giant PEXA has announced that last month was a new record month for refinancing in Australia.
August saw 300,000 refinancing deals completed in Australia, around 10% up year on year and surpassing the previous record, which was set after two rate cuts in June 2020.
95% of refinancing deals are struck using PEXA, giving it a unique ability to survey and assess the current state of the market.
PEXA publishes a Refinancing Index on a monthly basis, breaking down the figures on a state by state basis. Their index saw Queensland up 71.3 points year on year, with South Australia not far behind, up 70.6 on last August.
The ongoing lockdowns, which have given people time to think about their finances and the current low interest rate environments were cited as major contributing factors to the trend.
“Whether it is the forced downtime to reassess finances during COVID-19 related lockdowns, or speculation surrounding a potential interest rate rise as early as late 2022, refinance activity has reached new heights nationally. PEXA’s Refinance Index stood at 187 points for the week ending 29 August 2021, up 46.9% year-on-year.
“We anticipate a dip in property sale transactions as a result of the extended COVID-19 led lockdowns in New South Wales and Victoria, however refinance activity is expected to remain elevated in the near future based on the current trendline.”
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