More people refinancing

According to the latest AFG Mortgage Index, refinancing activity peaked at a two year high last month. New data shows that the level of refinancing reached 37.2%. The last time it reached the 37% level was in December 2008.

Data from AFG also found that lending by the major banks dropped to 82% in March 2010 from 92.5% recorded during the peak of the global financial crisis. Non-major banks now account for approximately 18% of all new home loans – a 100% jump in market share from the same time last year.

AFG general manager of sales and operations Mark Hewitt said this data showed borrowers were once again starting to regard other lenders as providing reliable and attractive alternatives to the major banks.

“Increased competition can only be good news for property owners and buyers and we are seeing some innovation return to mortgage products and pricing,” Mr Hewitt said.

The AFG Mortgage Index also confirmed the rise of property investors, accounting for 35.1% of all mortgages arranged in March 2010. The market share of first home buyers dropped to 10.4% in March 2010, as compared to 28.1% recorded for the same period last year.

If you are thinking of refinancing your home loan, speak to the mortgage brokers at Intellichoice by calling 1300 55 10 45 or visit www.intellichoice.com.au for more details on how Intellichoice can assist you. We suggest you get a home loan review to ensure that your home loan is still the best product for you based on your needs and current circumstances.