It is estimated that 30-40% of home loan applications are people interested in refinancing their mortgage.More than two-thirds of people in Australia who refinanced their home loans recently were able to secure a lower interest rate, a mortgage broker’s survey shows.The survey also found that 54% who refinanced changed their loan product and lender when refinancing, while 46% stuck with the same lender but changed their loan product.68% of consumers who refinanced in recent months were able to reduce the amount of interest paid. Of that 68%, 23% are now saving more than $300 a month, while 88% are saving more than $50 a month.Of those surveyed, 24% said they were refinancing to switch to a cheaper loan, through a combination of lower interest rates, fees and charges; 11% said they were consolidating debts and 10% said they were funding renovations. Other motivations to refinance included buying an investment property (9%) and accessing additional funds for other reasons such as paying for a wedding or holiday.The increase in those looking to refinance can largely be accredited to the trend of interest rates in the last year. From October 2009 to November 2010, the Reserve Bank of Australia (RBA) raised its official cash rate seven times, taking the rate from 3.25% to 4.75%. While economists say the RBA won’t hike interest rates in the next month, many economists are predicting a rate rise by early 2011.Whether you are looking at refinancing to lock in a better interest rate on your mortgage, to reduce your monthly mortgage repayments or to make use of your home equity for debt consolidation or to cover expenses such as home renovations, investments or a wedding, using a mortgage specialist who can provide a free home loan assessment can help you quickly identify a home loan that better matches your lifestyle.If you are living in Australia and looking to refinance to find a home loan that better suits your circumstances, you can save hours of mortgage research by using a company such as the Australian Lending Centre. Just let them know what you’re looking for in a home loan and they’ll help you find the most competitive refinancing options.
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