Are you concerned about rising interest rates? Maybe it’s time to reclaim some control by refinancing or requesting a rate review. Here’s why we’re seeing a rise in the amount of people refinancing their homes all around the country.

In only two months, the Reserve Bank of Australia (RBA) has hiked the cash rate from a record-low 0.10% to 0.85%, and most lenders have quickly passed those increases on to customers.

Unfortunately, the RBA has predicted that additional rate hikes are on the way, leaving you feeling quite powerless.

However, there are methods to make yourself feel more in command, such as by refinancing or asking your existing lender for a better rate, just like tens of thousands of mortgage borrowers across the country.

The sudden refinancing surge

Australia’s four most populous states saw a rise of more than 20% in refinancing rates in May as compared from April, according to PEXA’s latest refinancing insights.

Here’s a quick breakdown:

• NSW: 10,838 Refinances (20.8% up on May; 15.6% up year-on-year)
• VIC: 11,500 Refinances (26.7% up on May; 23.3% up year-on-year)
  
• QLD: 6,699 Refinances (21.8% up on May; 49.6% up year-on-year)
  
• WA: 3,244 Refinances (25% up on May; 46.1% up year-on-year)

The reason behind the increase in refinancing?

Now more than ever, lenders need to attract and keep borrowers.

Rates are going up, but if you look for a better deal and have enough equity and a good track record of paying off your mortgage, you might find one.

If that describes you, you’re an excellent client, and lenders desire excellent clients.

The other large cause for the recent increase in refinancing is that smaller lenders have been taking more and more customers from the big banks, with super-competitive rates.

In fact, according to PEXA, the major banks and their subsidiaries had a net loss of more than 5,000 borrowers to non-major lenders in May across all of New South Wales, Victoria, Queensland, and Western Australia.

Intense competition is on!

How can a Mortgage Broker help you?

Brokers are writing more loans than ever before.

To date, the percentage of new home loans written by brokers has never been higher, with 70% of all new mortgage loans currently being written.

And you must know that a broker’s loyalty belongs to you rather than any particular lender.

This implies that if we believe you may receive a better deal elsewhere, we’ll encourage and assist you in doing so – not hoping that you will stick with your present rate.

Even if you don’t want to refinance with another lender, you may always request that your current bank review your rate (and inform them that you’re willing to refinance if they don’t come to the table).

If you’d like to discover more about the alternatives available to you, please contact us right now at Will Bell Mortgage Broker – we’d be delighted to assist you feel more in control during this time.