Borrowers turn to brokers to refinance

By: Staff Reporter

When it comes to refinancing, almost half of borrowers turn to a mortgage broker for advice, the latest research shows.

According to Mortgage Choice’s 2010 Refinancers Survey almost half (45 per cent) of the 1,028 respondents surveyed said they had used a mortgage broker to help them refinance.

South Australians were most likely to enlist the help of a mortgage broker with one in two South Australians opting for a broker.

The survey also found that borrowers are motivated primarily by interest rates and bank fees when it comes to making a refinancing decision.

Almost one quarter of respondents said their main motivation for refinancing was to switch to a cheaper loan.

With the recent spate of rate rises and the possibility of more before 2011, as well as a renewed focus on mortgage exit fees Mortgage Choice spokesperson Kristy Sheppard said this was “no surprise”.

According to the survey the majority of borrowers – almost nine in 10 - who did refinance were saving at least $50 per month with just under one quarter (23 per cent) reporting savings of more than $300 per month.