Refinancing demand picks up

By: Staff Reporter

Demand for capped interest rate loans is driving up the level of refinancing activity, according to FirstMac.

The non-bank’s chief financial officer James Austin said the lender had received a growing number of applications from borrowers looking to move away from the big four banks and gain extra security by moving into a capped rate product.

“The capped interest rate product provides borrowers with greater security during this rising interest rate environment whilst still providing the benefits of a cheaper floating interest rate in the short term,” Mr Austin said.