Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Low rates fall on deaf ears: YBR

Low rates fall on deaf ears: YBR

The vast majority of Australians are not refinancing despite historic lows in interest rates, according to new research released by Yellow Brick Road.

The wealth manager and Vow Financial parent company has conducted research suggesting 83 per cent of Australians with a home loan have not refinanced in the period of falling rates, with 19 per cent not refinancing in over five years.

In addition, 40 per cent of the 1,000 survey respondents indicated they had never refinanced respite changing conditions, a trend YBR executive chairman Mark Bouris has questioned.

“It’s outrageous to think people are still paying high interest despite the opportunity to pay less,” Mr Bouris said.

“In effect you’re just handing the banks extra money. Many people take the time to drive to the cheaper grocery store just so they don’t pay an extra dollar for milk, yet when it comes to home loans they stick their head in the sand.”

The most common reasons given for not acting on lower rates were “not believing enough money would be saved” (31 per cent), “thinking the fees and charges would outweigh the benefits (20 per cent) and “perceiving the process as too much of a hassle” (18 per cent).

Queensland was found to have the highest population of “culprits of failing to refinance”, with 63 per cent saying that had either never refinanced or hadn’t for five years or more, followed by New South Wales at 61 per cent.

Advertisement
Advertisement
Low rates fall on deaf ears: YBR
mortgagebusiness

 

Latest News

A new cycle of “meaningful” growth cannot be restarted through property, the CEO of NAB has said, suggesting that business investment is...

New figures from AMP Bank have shown a “significant uptick” in the number of home loan customers switching from IO to P&I loans ahea...

Customer-owned banking institutions wrote $6.6 billion in the 2019 financial year, up 7.8 per cent from the previous year and outpacing grow...

FROM THE WEB
podcast

LATEST PODCAST: New lending launches

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.