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 - last updated 29 March 2024

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  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.40% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

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    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

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  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

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  • OMG Home Loan

    Owner Occupier, Principal & Interest, <60% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    6.00% p.a.

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

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  • Basic Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.13% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

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  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.37% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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* 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. You can change the loan amount and term in the input boxes at the top of this table. 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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