The PEXA Refinance Insights report deep dives into the latest property refinance trends, with refinance settlements in the September quarter surpassing the strong June 2021 quarter by almost 30%, which also represents an increase of almost 50% year-on-year.
The report found:
- Victoria recorded the highest volume of refinances at almost 38,000 for the quarter (up 29% from the June quarter, and 43% year-on-year)
- Western Australia (9,125 refinances) saw the highest year-on-year growth, up 89% when compared to the 2020 September quarter.
PEXA Insights’ Head of Research, Mike Gill, said, “Refinancing soared as property owners took advantage of ultra-low interest rates, buoyed by continued speculation that the cash rate could increase before 2024 - the timeframe earmarked by Reserve Bank of Australia to hit 2 to 3 percent inflation.
“Refinances were strongest in greater capital city areas across the nation, with far lower refinancing activity observed in regional areas. This trend suggests a combination of greater competition among lenders in metropolitan areas, and higher property prices motivating owners to seek out better deals,” said Mr Gill.
Regions of outer Melbourne, including suburbs such as Tarneit, Point Cook, Craigieburn, Truganina and Clyde North, dominated the national top suburbs list for property refinances within the September quarter, with Blacktown and Schofields (both in New South Wales) the only suburbs outside of Victoria to sneak into the top 10.
The PEXA Insights team publishes refinance activity via its recently released Refinance Index, an interactive online tool that shows market performance within the property refinancing sector. The PEXA Refinance Index stood at a record 199 points for the week ending 3 October 2021, almost double the Index’s starting point in October 2018.