Why Are Refinancing Figures On A Record-Breaking Run?
If you might wonder as to why mortgage refinancing is on a record-break high. The simple reason is the interest rates. The interest rates are at record low levels, increasing the number of homeowners refinancing. It is interesting to witness so many people refinancing their mortgages. Let’s see if mortgage refinancing is a good option for you too!
We’re currently witnessing more people refinance their home loans than ever, and the latest ABS figures out this week prove we’re in this for real. Refinanced home loans reached an all-time high of $17.2 billion in July, which is a 6% increase in June. It’s also more than double the value that was refinanced exactly two years prior in July 2019.
Reason for Mortgage Refinancing
With the advent of Covid19, many homeowners were seen opting for refinancing. Due to the pandemic, many households and businesses around the country suffered from financial constraints, and one simple way to reduce their monthly repayment and financial constraint is by mortgage refinancing
Another reason is that the RBA cash rate is at an all-time low of 0.1%, following six rate cuts in three years. Since competition amongst lenders is fierce, many are offering record-low home loan rates in a bid to win over as many customers as possible. RateCity has also reported that the number of variable rates under 2% on its database has jumped from 28 to 46 in just two months.
Borrowers are also seeking out lower interest rates, particularly for fixed-rate loans, and cashback deals across a large number of major and non-major lenders
All these reasons have led refinancing to hit a record high this year. If you’re a homeowner, you might want to try mortgage refinancing to reduce your burden of repayments. You can hire mortgage brokers in Sydney who can help you with your mortgage refinancing.
Here’s how mortgage brokers in Sydney can help you with your refinancing:
You may sometimes find fixed-rate loans and cashback deals super appealing, but in reality, they might not always be the best fit for your situation. Hence, to guide you through the entire process smoothly, your mortgage brokers in Sydney will always be by your side.
We, as your mortgage brokers in Sydney, can help you go through all the fine print, fees, and limitations that might exist within these loan options and also help you determine whether a fixed, variable or split loan is better suited to your needs.
The bonus if you hire mortgage brokers in Sydney is that they are great at negotiating. Your lender might not give you the best deal there is, but with your mortgage broker’s negotiating skills, you might be able to land up with the best one.
And if your broker feels that the offer you’re receiving is not good enough, they can anytime find a different lender that will fit your requirements.
Not to mention, this can be both intimidating, time-consuming, and frustrating if you were to do it on your own. But don’t you worry! We can help you with the leg-work and all you have to do is relax.
So if you haven’t refinanced in the past few years, get in touch with us today and we could help you save thousands of dollars in interest repayments on your mortgage
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