It's something that gets thrown in the too hard basket usually and the perception is that any potential savings from a change in lenders on the family home won't be worth the trouble. The vast majority of Australians are not looking at refinancing despite record low interest rates, according to research conducted by Yellow Brick Road. The banks are aware of this inertia and some will offer competitive solutions for switching that will make it worthwhile - but ensure you understand any potential penalties with your existing lender and that these get covered in any potential switch.
The YBR research suggests 83% of Australians with a home loan have not refinanced in the period of falling rates, with 19% not refinancing in over five years. Its 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. . The most common reasons given for not acting on lower rates were “not believing enough money would be saved” (31%), “thinking the fees and charges would outweigh the benefits (20%) and “perceiving the process as too much of a hassle” (18%). Queensland was found to have the highest population of “culprits of failing to refinance”, with 63% saying that had either never refinanced or hadn’t for five years or more, followed by New South Wales at 61%.