Refinancing activity following the RBA February rate rise is not expected to dramatically increase, according to Mortgage Business readers.
Only 56 per cent of respondents to Mortgage Business’ weekly straw poll expect to see an increase in borrowers switching mortgage products in the coming months, despite higher interest rates.
Speaking of the results, managing director of Australian Secured and Managed Mortgages Suzanah Asciak believes the industry will more likely see more borrowers attempt to renegotiate their existing loans with thier lender to avoid hefty exit fees.
“Borrowers are finding that the banks’ higher interest rates give them little incentive to switch. With the added cost of exit fees it’s just not worth their while,” she said.
While refinancing will not be a prime driver of business for Australian Secured and Managed Mortgages over the coming year, Ms Asciak believes that current market conditions will see borrowers return to non-banks as well as a revival of the non-conforming sector.
“Borrowers have come full circle and will look towards the non-bank sector as they chase better rates,” she said.
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