Rate hikes fuel surge in refinancing activity in FY 2023

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.

Loan purpose

Refinancing

Loan amount

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Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Offset	Redraw	Ongoing Fees	Upfront Fees	Max LVR	Lump Sum Repayment	Extra Repayments	Split Loan Option	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Variable Home Loan P&I <90%	5.29% p.a.	5.33% p.a.	$2,773	Principal & Interest	Variable			$0	$530	90%				Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Dedicated loan specialist throughout the loan application.	Go to site	Compare	Promoted	Disclosure
Unloan	Unloan Variable Rate Home Loan LVR < 80%	5.19% p.a.	5.10% p.a.	$2,742	Principal & Interest	Variable			$0	$0	80%				Built and funded by CommBank Owner Occupier Variable Principal & Interest 20% Min Deposit Redraw More details	A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.	Go to site	Compare		Disclosure
loans.com.au	loans.com.au Variable Home Loan with Offset P&I <90%	5.39% p.a.	5.43% p.a.	$2,805	Principal & Interest	Variable			$0	$530	90%				Owner Occupier Variable Principal & Interest 10% Min Deposit Offset Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Quick and easy online application process.	Go to site	Compare	Promoted	Disclosure

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