A growing number of home buyers are refinancing their home loans and gaining benefits such as lower interest rates, the latest MIAA/BankWest Home Finance Survey has found.
The national survey showed that 67 per cent of respondents had refinanced within the last three years - a significant increase from the number of refinances recorded a year ago.
Mortgage Industry Association (MIAA) Chief Executive Officer, Phil Naylor, said that satisfaction levels are also on the rise.
"An overwhelming 98 per cent say they have benefited from refinancing compared to 78 per cent a year ago, indicating more home buyers are making smart decisions when it comes to their finances," Mr Naylor said.
"Lower interest rates and better loan terms and conditions were the biggest benefits, recorded by 67 per cent of respondents, while more than half (55 per cent) said lower fees were a key benefit of refinancing," he said.
"Considering the recent interest rate rise and speculation of another one before Christmas, this is an opportunity for home buyers to review their current mortgage arrangements to ensure they have the best deal for their current situation."
The survey showed that refinancing is driven mainly by home renovation (21 per cent), seeking an investment property (20 per cent), finding a better rate (17 per cent) and needing more funds (17 per cent).
BankWest Head of Broker Sales, Phil Colton, said an increase in competition and the different types of home loan products now available has seen a rise in the number of customers refinancing their home loans.
"From January to July 2006, BankWest has seen an increase of 32 per cent for total loans written for refinancing," Mr Colton said.
"Customers no longer feel locked-in by their home loan provider and are able to move around and find the best rate and product on offer."
Phil Naylor said refinancing is the best option for a number of situations, but he advised borrowers to make sure they are better off after any change and fully aware of all fees, charges and conditions involved.
"Refinancing can be used to seek a lower interest rate or funds for home renovation or other purposes," he said.
"At the end of the day, borrowers should use refinancing to improve their financial and personal situation."
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