Australia’s borrowers took advantage of lower interest rates in 2021 to refinance their homes in record numbers, new research shows.
Analysis released by PEXA Insights* this month found that 363,978 property refinances were recorded in 2021 nationwide, up 28% from 2020.
PEXA’s Refinance Report reveals that all mainland states posted double-digit yearly increases in 2021, with Victoria leading the way for total volume with 125,071 refinances (up 19% over the year).
It was on the other side of the country where the strongest growth was seen however, with Western Australians’ refinancing up by a huge 59% from 2020.
New South Wales had 29% annual growth for refinancing with 121,640, Queensland was up 36% year-on-year with 62,110, and South Australia witnessed a healthy 27% spike with 25,307 refinances.
PEXA Insights Head of Research Mike Gill said record low interest rates, combined with increased speculation within the market of imminent rate rises, has driven property owners to refinance right across the country, particularly in the second half of the year.
“We saw refinancing activity was most common in more affordable areas within capital city postcodes, especially those with high levels of new builds”, he added.
The Report also found that non-major lenders played a prominent role for refinances in 2021.
“December saw the major banks move into their weakest position for refinances in two years, falling behind non-major lenders in all mainland states except for Western Australia”, Gill said.
*PEXA Insights is the research arm of digital property settlement platform PEXA
