The number of home loan customers opting to refinance has reached an all-time high, according to new research.
Finder.com.au’s analysis of the most recently released housing finance data by the Australian Bureau of Statistics showed that 21,896 borrowers refinanced their loans in December 2015 – a 20 per cent rise on the 12 months prior.
Furthermore, interest in the comparison website’s home loan refinancing hub has increased by 331 per cent in the past month compared to the same period last year.
Bessi Hassan, consumer advocate at finder.com.au, said this trend is likely to continue as customers rush to take advantage of historically low interest rates.
“In fact, the total value of refinanced home loans is forecasted to reach $100 billion this year – an increase from the record $77 billion in 2015, according to finder.com.au research,” she said.
“With signs pointing to a rate rise in the near future, now is a great time for home owners to consider refinancing. As it stands, the cash rate is at a historical low and providers are offering among the lowest rates ever seen.
“Borrowers can potentially save thousands of dollars per year by making the switch to a better deal.”