Savvy home loan owners happy to refinance
(10 November 2011 – Australia) Home loan borrowers are confident when looking at refinancing options and will happily shop around for better rates according the HSBC Bank Australia’s latest survey.
The survey polled over 30,000 Sydney and Melbourne respondents showing that 80 percent of Sydney borrowers know their home loan rate, 76 percent know what fees they pay and 85 percent think refinancing could reduce their costs further.
HSBC Head of Mortgages, Alice Del Vecchio said Sydney’s higher average dwelling price of A$504,000 compared with the national average of A$443,000 is the likely driver for their high home loan awareness.
"Having a larger financial commitment means home loan rate payments and fees are front of mind for Sydney borrowers. Being more sensitive to interest rate changes, Sydney borrowers clearly see the benefit of shopping around for their home loan."
Although Sydney borrowers' refinance awareness is higher relative to Melbourne (85 percent versus 26 percent believing they can save money) the survey shows there are still pockets of customers in both cities missing possible savings by failing to explore refinancing.
Del Vecchio said the lack of awareness amongst these groups towards refinancing could stem from a perception that it involved paperwork, research and additional costs.
"Customers don’t seem to realise that now is an optimal time to consider refinancing. It is a highly competitive lending environment right now and banks are working really hard to win borrowers’ business."
Del Vecchio said having a refinancing strategy is key.
"Have a clear idea why you want to refinance – whether that be to simply get lower rates or to take advantage of a loan’s features, research the home loan market online and see what rates are available."
HSBC Head of Mortgages, Alice Del Vecchio said Sydney’s higher average dwelling price of A$504,000 compared with the national average of A$443,000 is the likely driver for their high home loan awareness.
"Having a larger financial commitment means home loan rate payments and fees are front of mind for Sydney borrowers. Being more sensitive to interest rate changes, Sydney borrowers clearly see the benefit of shopping around for their home loan."
Although Sydney borrowers' refinance awareness is higher relative to Melbourne (85 percent versus 26 percent believing they can save money) the survey shows there are still pockets of customers in both cities missing possible savings by failing to explore refinancing.
Del Vecchio said the lack of awareness amongst these groups towards refinancing could stem from a perception that it involved paperwork, research and additional costs.
"Customers don’t seem to realise that now is an optimal time to consider refinancing. It is a highly competitive lending environment right now and banks are working really hard to win borrowers’ business."
Del Vecchio said having a refinancing strategy is key.
"Have a clear idea why you want to refinance – whether that be to simply get lower rates or to take advantage of a loan’s features, research the home loan market online and see what rates are available."
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