Most of the significant players in the Australian home loan market are expecting to see 2012 as the year of home loan refinance. While there may be some interest generated in new property purchases by the decline in property prices, a significant aspect of the time spent by mortgage brokers with their clients is expected to focus on home loan refinance.
For example, over the last 12 months, Loan Market Group has seen a 16 per cent spike in refinancing enquiries.
This trend is expected to continue into the current year.
“With projections of more rate cuts by the RBA in the first half of 2012, mortgage brokers and lenders should see sustained growth in the home loan refinance market.
Mr Rushton from the Loan Market Group, said that recent Australian Bureau of Statistics data showed a 17 per cent increase in home owners refinancing year on year to November 2011.
Historically speaking we see a spike in interest in home loan refinance whenever interest rates move radically in either direction. Given that 2012 is expected to see cheaper home loans through several rate cut announcements by the RBA, mortgage refinance inquiries are expected to increase.
