Refinancing activity surges

By: Staff Reporter

Refinancing activity peaked at a two year high last month, new data from AFG has found.

According to the latest AFG Mortgage Index, the level of refinancing reached 37.2 per cent.

The last time it reached the 37 per cent level was in December 2008.

AFG data also found lending by the majors dropped to 82 per cent in March from a high of 92.5 per cent recorded during the peak of the global financial crisis.

Non-majors now account for 18 per cent of all new loans – a 100 per cent jump in market share from the same time last year.

AFG general manager of sales and operations Mark Hewitt said this data showed borrowers were once again starting to regard other lenders as providing reliable and attractive alternatives to the majors.

“Increased competition can only be good news for property owners and buyers and we are seeing some innovation return to mortgage products and pricing,” Mr Hewitt said.

The Index also confirmed the rise of property investors, who accounted for 35.1 per cent of all mortgages arranged in March.

While the market share of first home borrowers dropped to just 10.4 per cent last month – falling from the 28.1 per cent recorded in March 2009.