Refinancing out of Big Four on the up
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12/04/2010 5:00:00 AM
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Not only is there an increase in borrowers refinancing out of loans from the Big Four, but it comes with a fresh demand for capped interest rate loans, according to non-bank mortgage lender FirstMac.
These observations support newly-released AFG Mortgage Index data that found a peak in refinancing activity of 37.2% last month - a two-year high.
The data also found an increase in lending market share by the non-majors.
FirstMac chief financial officer James Austin said FirstMac had observed similar up-trends in refinance activity, with an increasing number of applications from borrowers moving away from the four major banks.
There had also been an increased in capped interest rate enquiries.
"The capped interest rate product provides borrowers with greater security during this rising interest rate environment whilst still providing the benefits of a cheaper floating interest rate in the short term," Austin said.
Related Story
Mortgage market is competitive again: AFG - A new index released by Australia's largest mortgage broker, AFG, shows that home loan refinancing is at a record high and that lenders outside the Big Four are reaping the benefits.
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