Homeowners may be able to take advantage of the competition from smaller banks to negotiate better mortgage rates, despite the Reserve Bank lifting the
official interest rate twice this year.
Mike Gill of PEXA says the RBA increases have resulted in more competition in the lending market, which means good opportunities for borrowers.
While the major banks passed on the full RBA cash rate increase to customers, many non-major lenders chose not to pass it on, to stay competitive and win market share.
“The non-major banks have been successful in winning more re-finances than they have lost in all states so far in 2022,” he says.
PEXA’s latest Refinance Index shows that refinancing has increased in 2022 by 21.5%.
“Property owners are beginning to feel the crunch of higher cost of living due to inflation combined with rising interest rates,” says Gill. “This has motivated many to review their home loan and look for a better deal.”