Interest Rate Hikes Spur Record Growth in Australian Refinancing
Australia is witnessing the refinancing boom expand further as more and more homeowners switch lenders to cope with the central bank’s current interest rate hike cycle.
The total value of owner-occupier refinancing activities across the country broke an Australian Bureau of Statistics (ABS) record when it jumped 9.1 percent to $13.4 billion (US$9.32 billion) in November 2022.
This marks a significant change as the monthly owner-occupier refinancing level has hovered around $12 billion since June 2022.
According to acting ABS head of finance and wealth Dane Mead, many borrowers had to switch lenders due to rising interest rates.
Another factor that was likely to contribute to the growth in refinancing was the expiry of fixed-rate home loans….