Owner-occupiers Make Loan Switch

The number of people refinancing with different lenders is on the rise as borrowers try to secure better deals in a rising interest rate environment.

Australian Bureau of Statistics figures show the number of borrowers changing lenders is 25% higher than it was in June last year.

ABS Head of Finance and Wealth Katherine Keenan says the latest figures show the value of owner-occupier housing loan commitments increased by 9.7% in June.

“As interest rates rose in recent months, borrowers sought loans with lower interest rates and lenders competed to attract them,” Keenan says.

First Home Buyer numbers are down 8% over the month to 9,393, which is now similar to pre-pandemic levels.

Loans to investors fell by 6.3% nationally. In NSW loans are down 10.5% to $439m, Victoria, 3.4% to $100m and Western Australia down 10.6% to $78m.

ABS building approval data also shows the total number of buildings approved fell 4.7% in June, after a 10.8% rise in May.