Cut to cash rate likely to encourage more Aussies to refinance

Refinancing levels are likely to increase in the coming months after the Reserve Bank of Australia's (RBA's) decision to reduce the cash rate.

The 2011 Mortgage Choice Saving & Spending Insights Survey revealed that 36 per cent of people said they would be more inclined to take this step if there was a cash rate cut.

Nearly half (43 per cent) of the Generation Y property owners polled said a rate reduction would tempt them to opt for refinancing.

Kristy Sheppard, Mortgage Choice spokesperson, commented: "Borrowers should take the reins of their home loan and scout around for rate discounts, switching incentives and other offers."

She urged those who did not think they would refinance their home to ensure they at least research the matter to establish whether or not they could be better off following the cut.

The last time the RBA announced a change to the cash rate was in November 2010 when it was increased by 25 basis points.

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