1,800 Aussies Are Refinancing Every Day. Here’s Why That Matters To You
More and more home owners are picking up the phone and asking a simple question: “Am I paying too much?” According to recent data, around 1,800 Australians are refinancing every single day, with $371 billion in home loans refinanced over the past year alone. That’s a 13% jump year-on-year, and it tells us one thing clearly: borrowers are done sitting still.
What’s Actually Happening
Higher interest rates and rising living costs have pushed people to shop around instead of quietly staying put with their bank. And the numbers behind this shift are hard to ignore. Around 60% of mortgage holders say they’re feeling financial stress right now. More than 1.4 million Australians are spending over 40% of their income just on loan repayments. For Millennials, that figure sits at roughly 41%. Perhaps the most telling stat of all: almost half of borrowers say they feel stuck, like they’re stuck in a kind of “mortgage prison,” even when better deals exist elsewhere.
Why This Is Happening
Loyalty doesn’t pay your mortgage. Banks know that most people won’t bother reviewing their loan once it’s set up, and that’s exactly why so many borrowers end up paying more than they should. The good news is, competition between lenders is heating up, and that’s creating real opportunities for people willing to look around.
What This Means For You
If you haven’t checked your home loan in a while, this is worth ten minutes of your time. A few things worth looking at:
- Compare rates across a few lenders, not just your current one
- Work out your true savings after fees and switching costs, not just the headline rate
- Review your loan structure to make sure it still suits how rates have moved
- Use offset and repayment features properly if your loan already has them
- Check your equity and serviceability before you refinance, so you know what you actually qualify for
None of this needs to wait until things feel unmanageable. The best time to review a loan is before the stress builds up, not after.
Thinking about reviewing your loan?
At OM Financials, we make the loan process simple and guide you every step of the way, comparing options across lenders so you’re not left guessing. If refinancing could ease the pressure on your repayments, our refinance home loan service is a good place to start. Speak with our brokers today to understand your borrowing power in this market. Book your free consultation now, or contact us anytime on 0478 876 967.
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