Investors push home loan refinancing levels to record high $17.8 billion

By Tom Watson · · 2 min read
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australian-property-owners-happy-about-refinancing

A recent surge in switching among Australian property investors has helped lift the amount of mortgage refinancing being undertaken to record levels.

Lending indicators released by the Australian Bureau of Statistics (ABS) last week show that mortgage holders refinanced roughly $17.8 billion worth of home loans to another lender in the month of August. That figure is the highest ever recorded by the ABS, beating out the previous record of $17.2 billion revealed last month.

Despite an overall rise, owner occupier refinancing actually dropped by 1% month-on-month, though it still reached over $11 billion during August. Meanwhile, refinancing among investors surged by 11.5% to a new high of $6.53 billion. 

External refinancing (seasonally adjusted). Source: ABS lending indicators, August 2021

abs-refinancing-figures-august-2021

As the ABS’ graph above shows, refinancing levels have gone through the roof in recent years - more than doubling since October 2018. This is perhaps unsurprising, as the Reserve Bank has cut the official cash rate six times over that period and lenders have followed suit by dropping home loan rates for borrowers.

In fact, since October 2018, the average variable rate in the Mozo database (P&I repayments, 80% LVR) has fallen by 121 basis points for owner occupiers and 125 basis points for investors. 

As a result of these drops, existing mortgage holders have been presented with a real opportunity to switch their loan to a lower interest rate - an opportunity that, as the data indicates, many seem to be taking. 

RELATED: Multiple lenders are offering $3,000 cashback to refinance your home loan

Ready to find out if you can make the most of the current low interest rate environment by switching to a better deal on your mortgage? 

Our dedicated refinance home loan comparison table lets you compare refinancing offers from a range of different lenders all in one place. Or if you’re eager to get looking straight away, check out some of the great deals in the table below.

Refinance home loan comparison - last updated 20 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.60% p.a.variable for 24 months and then 4.00% p.a. variable
    3.96% p.a.

    Already includes July RBA rate increase. New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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    Details
  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

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    Details
  • Featured Product
    Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    3.64% p.a. variable
    3.66% p.a.

    Low variable rate No annual fees to pay. Unlimited additional repayments. Free redraw facility available. Fast digital application. 40% deposit required. Winner of Mozo Experts Choice Australia's Best Essential Bank 2022^.

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    Details
  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.

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    Details
  • Featured Product
    Own Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    3.89% p.a. variable
    4.15% p.a.

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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    Details
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.74% p.a.variable for 12 months and then 4.23% p.a. variable
    4.22% p.a.

    Already includes July RBA rate increase. No monthly or ongoing fees. loans.com.au has some of the fastest settlement times on the market. They can meet 30-day settlement timeline so you can start saving thousands, as soon as possible! Mozo award-winning online lender, friendly and local Australian based team.

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    Details
  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    3.27% p.a. variable
    3.28% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 August 2022 and settle by 31 October 2022.

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    Details
  • Mozo Expert Choice Badge
    No Frills Home Loan

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    3.49% p.a. variable
    3.49% p.a.

    The Qudos Bank No Frills Home Loan features a competitively low rate for borrowers who don’t need all the bells and whistles. There are $0 bank fees. Weekly, fortnightly or monthly repayment options. Unlimited extra repayments at no cost. Instant redraw available with online banking. Split your loan with fixed rate loan options.

    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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