Borrowers refinancing with the same lender are getting a better deal - that's the message being sent out by the Mortgage & Finance Association of Australia (MFAA) after a recent survey found a high level of satisfaction with refinancing arrangements among Australians.
The survey, conducted by MFAA and BankWest, was completed by 814 Aussies and the average satisfaction rating was 7 out of 10.
The data revealed that the majority of lenders refinanced through their existing lender. Destroying the reputation built up by the mortgage industry for encouraging churn.
Phil Naylor, chief executive officer of the MFAA, said: "It is encouraging for both lenders and consumers that only 30% of respondents who had refinanced their home loan changed mortgage providers in the process."
He added: "Borrowers are getting a better deal from the same provider and reaping the benefits. This dispels the myth of churn in the industry."
The findings found that refinancing was price driven. Three-quarters of those benefiting from refinancing got better loan terms and conditions, 72.3% got a lower interest rate and 61.7% got lower fees.
Home renovation was given as the main reason for refinancing among owner-occupiers (31.5%), while this accounted for just 6.8% of refinancing decisions.
Phil Colton, head of broker sales, BankWest, said the research demonstrated the benefits of actively managing your mortgage.
"We encourage people with a home loan to get the best deal they can and to make sure their broker and lender is working with them to ensure their mortgage is relevant to their current circumstance," said Colton.
Around 41.9% of respondents with outstanding home loan debt had refinanced within the last three years and 22% in the last 12 months.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker