Fresh figures from Aussie Home Loans have revealed a drop in investor activity over the December quarter, but an uptake of first home buyers and refinancers.
According to the group’s December quarter figures, the number of new home loans and refinance activity by investors fell 10 per cent from the same time last year.
However, the slack has been taken up by a 6.5 per cent rise in first home owner purchases and a 27.6 per cent increase in owner-occupiers refinancing their mortgages over the quarter.
“We expect the refinancing and owner-occupier purchases to continue to grow in 2016 as borrowers become more confident that the current historically low interest rate conditions will continue well into the year,” Aussie chief executive James Symond said.
“Borrowers are getting the message that now is the right time to save money on their mortgage repayments through refinancing, with many continuing to make payments at higher levels to get ahead on their mortgage.”
The figures showed that many home owners are saving 0.71 per cent on average on their home loan interest rates when they refinance.
“Our figures show that more and more of our customers are taking advantage of record-low interest rates,” Mr Symond said.
“They are actively seeking out and securing themselves a better deal, saving tens of thousands of dollars in many circumstances.”
Aussie’s figures showed that NSW residents are making the most of the refinance savings, with a 0.75 per cent reduction on average.
This is followed by Queenslanders, who are saving an average 0.73 per cent on their home loan interest rate.
[Related: Teachers Mutual to speed up turnaround times]