Australians refinanced $20 billion worth of home loans in April, ABS figures reveal

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The itch to switch to a lower interest rate appears to be alive and well among Australian property owners, according to new refinance home loan figures released today.

The Australian Bureau of Statistics’ (ABS) latest lending indicators revealed that roughly $20.4 billion worth of mortgages were refinanced during April - $13.6 billion of which came from owner occupiers and $6.8 billion from property investors.

As the graph below illustrates, total refinancing levels were about 9% lower in April than they were in March (in real terms, not seasonally adjusted). But the strong amount of switching being undertaken by owner occupiers means that total refinancing amounts were relatively high in April compared to most points in the past year.

What’s motivating all this refinancing?

There’s no escaping the fact that one of the main drivers in the property market right now is low interest rates, and that’s likely one of the motivators behind many mortgage holders making the switch to new loans.

The official cash rate has been sitting at a record low 0.10% for seven months now, and as a result, lenders have also been keeping their home loan rates relatively low.

Just how low are they? Well, here are some of the average home loan rates for owner occupiers making principal and interest repayments (based on a $400,000 loan and an <80% LVR) in the Mozo database as of June 4:

  • Variable rate: 3.25%
  • 1-year fixed rate: 2.33%
  • 3-year fixed rate: 2.31%
  • 5-year fixed rate: 2.71%

To put the variable rate average into context, just two years ago (June 2019) it was sitting 106 basis points higher at 4.31%.

The gap between those two rates also shows how much mortgage holders who haven’t switched rates in recent years could stand to save. According to our home loan repayments calculator the difference between those two rates equates to $231/month less in repayments and $69,345 in total interest saved over a 25 year period.

RELATED: June home loan snapshot: Bendigo, Citi and Macquarie lower variable rates

For more information on home loan rates, borrowing figures and more, check out our Australian home loan statistics hub, or to see how your own mortgage deal stacks up have a browse through the latest rates, fees and features in our home loan comparison tables.

Compare refinance home loans - rates updated daily

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  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.
    Go to site
    Details
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    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.95% p.a.
    fixed 3 years
    2.27% p.a.
    Go to site
    Details
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    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.
    Go to site
    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.
    Go to site
    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.
    Go to site
    Details
  • placeholder
    Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    3.67% p.a.
    Go to site
    Details
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    Mozo Experts Choice 2021
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.
    Go to site
    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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