Released 21 May 2012



Lenders are being warned by financial comparison website RateCity to expect more borrowers to jump ship after figures showed the largest number of refinanced home loans in four years. 

Australian Bureau of Statistics (ABS) said there were 17,756 refinanced home loans in March 2012, the biggest number of refinanced home loans in one month since April 2008.

RateCity found that almost four in every 10 home loans financed in March were borrowers who refinanced from one lender to another. There was also a 19 per cent increase in refinanced home loans for the 12 months to March 2012 compared to the previous 12 months.

RateCity spokesperson Michelle Hutchison said the number of borrowers who switch lenders is likely to increase.

“While there’s still a lot of work to do to make switching easier, it’s clear that Australian borrowers are far more comfortable switching their home loan than ever before.

She added that the ban on exit fees for new variable rate loans since 1 July 2011 must be playing a part.