AFG’s latest figures show the popularity of refinancing is at a 12-month high, while fixed-rate loans are becoming increasingly unpopular.
Refinancing outweighed all other loans on AFG’s Mortgage Index at 39.1 per cent for June. Fixed rate loans fell to 16.5 per cent – a significant decrease from March’s peak of 25.4 per cent.
Mark Hewitt, general manager of sales and operations at AFG attributed the growth to a more competitive market.
“Refinancing is very strong as borrowers take advantage of a more competitive market to secure a better deal," he said.
"It’s significant that, as we begin a new financial year, the vast majority of borrowers are opting not to lock in an interest rate. Most see a period of stable or even softer rates for the foreseeable future.”