Big banks grab the lion's share of refinancing in NSW
Home loan refinancing activity is on the rise in NSW, and according to a new report from the NSW Land Registry Services, it’s the big banks that are benefiting the most.The LRS found that more customers were moving away from the major banks than were coming on board in the months leading up to COVID-19, but after the pandemic struck that trend was reversed.Since then, the big four have been the only segment to see a substantial increase in share of refinances. Meanwhile, refinances to non-ADI lenders, other domestic banks, foreign ADIs and customer owned banks have decreased.In August alone, the number of customers flocking to the big banks from other lenders accounted for 70% of refinances in NSW, an increase of 15% on the same month last year.In total, the major banks won over 5,195 refinancers over the month, outperforming other domestic banks (+1,311), customer owned banks (+458), foreign ADIs (+412), and non-ADI lenders (+346).The major banks continue to dominate the home loan space, making up 67% of mortgages recorded on titles in NSW. This represents an increase in volume of 19% from the previous year.
Read More
Australia’s best refinance home loans for 2020
When was the last time you performed a home loan health check? Mortgage rates have plummeted over the past year, so if you haven’t made the move to refinance your home loan already you could be missing out on serious savings.
Read More
NAB offers $2,000 cashback for mortgage refinancers
Overnight, major bank NAB launched a $2,000 cashback offer for refinancers across a range of its home loan products. For customers looking to refinance before 31 January 2021, the cashback is available on the following loans:
Read More
Easy Street takes home loan rates below 2%
Easy Street, a division of Community First Union, introduced a contender for best value home loan this week. Its Standard Variable Home Loan now offers rates as low as 1.95% p.a. (1.99% p.a. comparison rate*) on loans of at least $750,000. The loan doesn’t charge any monthly or annual fees and comes with a number of features, such as an offset account, fee-free redraw facility and the ability to make free extra repayments. There is, however, an application fee of $500.John Tancevski, chief executive of Community First Credit Union said it was the lowest home loan rate they have ever offered and “is evidence that it is possible to offer an exceptionally low rate without scrimping on loan features.”
Read More
Property prices drop for fourth month in a row, but regional markets hold firm
While the rug hasn’t been pulled out from underneath the property market just yet, prices continue their gradual descent, with the CoreLogic home value index recording a decrease of 0.4% in August. This marks the fourth consecutive month property prices have fallen, however the rate of decline has slowed compared to previous months.CoreLogic head of research, Tim Lawless said Melbourne continues to lead the decline, with home values falling by 1.2% in August and 4.6% since the onset of the pandemic.“It’s not surprising to see Melbourne as the weakest housing market considering the extent of the virus outbreak, and subsequent restrictions, which have weakened the economic performance of Victoria,” he said.Among capital cities, only Darwin (+1%), Canberra (+0.5) and Hobart (+0.1) recorded increases in dwelling values. Elsewhere, property prices held steady or decreased only slightly, as in Sydney and Brisbane, where prices fell by 0.5% and 0.1%, respectively. Lawless expects diverging outcomes across markets as states experience varying degrees of success in containing the virus. Reliance on overseas migration as a source of housing demand will also result in uneven impacts.“The performance of housing markets are intrinsically linked with the extent of social distancing policies and border closures which also have a direct effect on labour market conditions and sentiment,” Lawless said.
Read More
September home loan snapshot: Refinancers targeted with extensive rate discounts
Competition for borrowers continues to remain fierce heading into spring, with lenders cutting their sharpest variable and fixed mortgage rates by even greater margins and offering up more incentives for refinancers to switch loans.
Read More
ME Bank sharpen fixed mortgage rates by up to 0.40%
ME Bank has joined the swelling ranks of lenders making cuts to short-term fixed home loan rates by reducing a number of offers between 20 to 40 basis points.
Read More
Home loan refinance: 94% of mortgage holders could be losing out by failing to switch
Five Reserve Bank rate cuts in the past 14 months have accelerated home loan rate cuts across the board, yet only a fraction of Australian households have taken up the opportunity to refinance their mortgage.
Read More
86 400 launches new tiered variable rates to help borrowers save
Australian neobank 86 400 has announced it will be offering tiered variable rates for home loan customers, giving those with a lower LVR (Loan to Value Ratio) the chance to access cheaper rates.The new pricing system means borrowers with a deposit of at least 40% of a property’s value can pay as little as 2.59% p.a. (2.87% p.a. comparison rate*). According to 86 400’s lending product lead, Melissa Christy, this will go a long way towards freeing up customers’ finances."We built 86 400 to help Australians take control of their money. By reducing the variable loan rates for customers with more equity in their property, we are helping our customers do more with their money,” she said.The new rates came into effect 20 August 2020, and will be available to all customers, including existing ones. The tiers and accompanying rates for owner occupiers making principal and interest repayments are listed below:• LVR ≤ 80%: 2.74% p.a. (3.02% p.a. comparison rate*)• LVR ≤ 70%: 2.64% p.a. (2.92% p.a. comparison rate*)• LVR ≤ 60%: 2.59% p.a. (2.87% p.a. comparison rate*)Investors will also be able to take advantage of the new pricing system, with rates as low as 2.89% p.a. (3.17% p.a. comparison rate*) available. Below are the price bands for investors making principal and interest repayments:• LVR ≤ 80%: 3.09% p.a. (3.36% p.a. comparison rate*)• LVR ≤ 70%: 2.99% p.a. (3.27% p.a. comparison rate*)• LVR ≤ 60%: 2.89% p.a. (3.17% p.a. comparison rate*)While rate discounts by LVR are nothing new, they’ve become more popular in recent months as lenders look to peel away low-risk refinancers from competitors. A lower LVR means borrowers are less likely to enter negative equity territory and be forced to sell during a downturn. 86 400 is also offering $2,000 cashback on settlement for eligible borrowers. The offer is available on applications of $250,000 or more, so long as they are received by 31 August 2020 and settled by 31 October 2020.For more information, read our review for the 86 400 Own Home Loan. And if you’re wondering how the rates on offer compare to others on the market, browse our home loan comparison page, where you’ll be able to filter your search by rate and type.
Read More