Refinancing reached another record high in November as borrowers switched lenders for lower interest rates, according to data released this week by the Australian Bureau of Statistics (ABS).
The latest figures show that the value of owner-occupier refinancing between lenders rose 9.1% to a new high of $13.4 billion in November (seasonally adjusted).
The value of lending continued to decline in November, from record high levels seen earlier in 2022.
Total new loans for housing fell 3.7%. New owner-occupier loans fell 3.8% in November, while new investor lending fell 3.6%.
Acting ABS head of Finance and Wealth Dane Mead noted that more borrowers switched lenders for lower interest rates as the Reserve Bank’s cash rate target continued to rise.
“The number of owner-occupier dwelling commitments also continued to fall in November to below the pre-pandemic level for the first time”, Mead said.
The number of new loans to first home buyers fell 5.5% in November 2022, driving the overall fall in owner-occupier lending. First home buyer loans in November were 51% below their January 2021 peak and 16% below the February 2020 pre-pandemic level.
