Around 53% of mortgage brokers believe it is a good time to refinance, but only 445,000 of the 6 million active mortgages have been refinanced in the past year, according to the latest Aussie report.
Despite favourable lending conditions and low interest rates, 60% of mortgage borrowers have not reviewed their home loan, while only 20% have refinanced.
The report stated that Australians could be losing out on the full potential of refinancing, with data from Lendi Group—Aussie’s parent company—showing that refinancers could save around $2,000 by dropping less than 1% in their interest rate.
“The gap here is staggering,” said David Hyman, chief executive officer at Lendi Group. “With three quarters of Australia in lockdown, we understand that refinancing may not be top of mind right now, but by not setting aside a small amount of time to look at their home loan, mortgage holders could be missing out on thousands in savings, which could be really helpful for many families.”
Most respondents claimed to understand the importance of refinancing a home loan on a regular basis, but 22% don’t know where to begin, 18% don’t believe they can get a better deal, and 24% think that they will end up spending more money.
In fact, 60% of those with a home loan aren’t confident that they have currently have a good deal.
Hyman advised that “bridging this knowledge gap” can easily be solved by a no-obligation consultation with an expert.
“A mortgage broker can help you understand how your current home loan compares the market, and in some instances help you negotiate a better rate with your existing lender,” Hyman said.
