Property investors are coming back

Source: ABS Lending Indicators November 2023, released 12 January 2024, seasonally adjusted data.

“Refinancing largely stabilised in November after three months of steep declines.”

While we’re now well past the peak in refinancing, the value of mortgages switching each month is still at elevated levels,” she said.

Rock bottom rates in 2021 might have shone a spotlight on refinancing, but the rising cash rate has been the blowtorch that’s spurred many borrowers into action.

The latest ABS data shows over 700,000 mortgages have refinanced since the start of the rate hikes, switching more than $360 billion worth of loans.

Refinancing could well drop further in the first half of 2024, however, if we do see cash rate cuts later in the year it could be game on for some borrowers ready for their next move.

It’s fantastic to see first home buyer numbers rising again in the month of November, despite rising rates and property prices.These numbers are likely to lift further in 2024, particularly when the government’s much touted Help to Buy scheme finally gets up and running.

While this scheme will help lower-income first home buyers on to the property ladder without having to shackle themselves to super-sized debts, the places in this scheme are set to be capped at just 10,000 per year, which is unlikely to be enough to cater for the potential demand,” she said.

Leave a Reply

Your email address will not be published. Required fields are marked *