The study found that 67% of homebuyers have refinanced within three years. Of these, 98% reported they have benefited from refinancing compared to 78% a year ago. Phil Naylor, CEO of MIAA said the high satisfaction level indicates more home owners are making smart decisions when it comes to their finances.
A significantly lower interest rates and better loan terms and conditions were the biggest benefits according to 67% of respondents. More than half (55%) said lower fees were a key benefit of refinancing.
BankWest head of broker sales, Phil Colton said stiff competition among lenders and the different types of products now available are prompting home owners to re-assess their mortgages. "Customers no longer feel locked-in by their home loan provider and are able to move around and find the best rate and product on offer," he said.
While refinancing is a beneficial option for a number of circumstances, it often involves hefty costs. Naylor warns borrowers not to be hasty in jumping off ship and should make sure that the savings they make outweigh the costs involved in refinancing. He recommends homeowners who are thinking of refinancing to seek financial advices on the benefits and any hidden traps of alternative products.
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