Now that Australian families no longer have to worry about getting hit with fees for leaving a current bank that has given them a mortgage, more and more of them are leaving the bigger banks and choosing to refinance with help from a mortgage broker. Rockingham brokers and other smaller options that are not affiliated with the four major banks enjoyed a 24% growth rate in the first half of 2012. Also, data shows that 35% of people who held a current mortgage chose to refinance it as opposed to buying a new piece of existing property, or building on a lot.
Reasons for the Change
Some people may be curious about why there is such a change in attitude regarding home loans. Kwinana, Rockingham, and other nearby residents, as well as people throughout the rest of Australia may be feeling particularly eager to refinance because they are spurred by the attitude of Treasurer Wayne Swan.
He states that because the Australian government has recently authorised reforms, more power has now been given to the Australian people who may be feeling that they are being treated unfairly by their current banking choice.
Areas Where the Mortgage Changes Are Most Noticeable
New South Wales, Victoria and Western Australia are just three places that have seen an upturn in the amount of mortgages getting refinanced. In fact, a recent article shows that in some areas, the rate of refinancing was as high as 37%.
The Larger Banks Still Play a Role
It is important to note that big banks are far from being obsolete when compared with other solutions from mortgage brokers. Cockburn, Kwinana, Rockingham, and other Australian residents, still held 86% of all housing loans at large banks as of June 30. Although, even as the larger banks still hold a significant share, they did notice that new lending instances shrank, as people began looking into exploring other options proposed by mortgage brokers. Rockingham families, along with the rest of Australia at large actually allowed the smaller banks to see a 24% growth in terms of home loans. Furthermore, in terms of monthly lending, trends for the bigger banks decreased by 2%, while wholesale lenders experienced a 27% increase in their amount of monthly loans.
Although these current trends could certainly change by the year’s end, the statistics so far are already demonstrating some interesting ideas about the future for big banks versus smaller borrowing options in regard to home ownership. Consider meeting with a mortgage broker today and explore the possibility of working out a good plan for you to own your home.
