Change for the better
Eighty per cent of people who changed mortgage providers when refinancing their home loan benefited in some way, according to the latest Mortgage & Finance Association of Australia (MFAA) and BankWest survey.
The study found that around one third of respondents who refinanced their loans also changed their loan provider, and 79 per cent of those that did said they benefited from it. While only 8.8 per cent of people who changed providers said they did not benefit from the move.
The MFAA attribute the results to an increasingly competitive home loan market, giving those who shop around and periodically re-examine their home loan provider great benefits.
Of the respondents who benefited from changing provider: 70.4 per cent got a lower interest rate; 64.8 per cent got better loan terms and conditions; 61 per cent got better service; and 48.1 per cent got a better fee package.
Head of mortgages and savings, BankWest, Paul Vivian said the results highlighted the importance of shopping around for the best deal available.
“It’s important to note that this data shows that the refinancing of home loans has declined in the past year,” he said.
“20.9 per cent of respondents refinanced their home loan in the past 12 months, down from 26.5 per cent at the same time last year.”
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