The series of rate hikes continue to boost refinancing activity, particularly among borrowers with expiring fixed-rate terms.

According to PEXA Mortgage Insights Report, refinancing activity rose 13.8% to 450,177 in 2023 financial year.

Western Australia recorded the highest growth at 29.5%, followed by South Australia at 19.4%, and Queensland at 17.4%.

In terms of volume, however, Victoria maintained its position as the top state for refinancers, recording 150,592 refinances in the financial year. For the past four financial years, Victoria trumped all states in terms of refinancing activity.

Major banks increased their market share in refinances across all states during the year.

PEXA head of research Mike Gill said the higher proportion of recent borrowers who had taken out fixed-term loans over the preceding few years has been a significant boost in refinancing activity.

“These borrowers are now rolling off their low interest, fixed-term loans, leaving them open to a better deal. The lure of attractive incentives offered by many of the major banks over the year to entice borrowers to switch lenders, is clearly working,” he said.

On the other hand, new lending activity declined across all states in the financial year — a total of 481,234 new loans were issued by lenders, representing a 20.6% decline from the previous year.

“This reflects the property market normalising to pre-pandemic levels, after an exceptional boom across all mainland states over the previous two years,” Mr Gill said.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Rates
Features
Fees
Other
Lender
Variable
More details
Online ExclusiveUp to $4k cashbackINCLUDES NOV RBA RATE INCREASE
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
Online ExclusiveUp to $4k cashbackINCLUDES NOV RBA RATE INCREASE

Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
More details
Variable
More details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMEYM. (T&Cs apply)

Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMEYM. (T&Cs apply)
More details
Variable
More details

Variable Rate Home Loan – Refinance Only

    More details
    • Immediate cashback upon settlement
    • $2000 for loans up to $700,000
    • $4000 for loans over $700,000

    More details
    Important Information and Comparison Rate Warning

    Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 9, 2023.

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