Reserve Bank of Australia governor, Philip Lowe says homeowners should consider refinancing

Australia’s economic chief is encouraging home mortgage holders to ask their bank for a better home loan deal or find a new bank. In a recent speech, Reserve Bank of Australia governor Philip Lowe said he’s very pleased to see that more people are switching banks to get lower mortgage interest rates.

Australia’s economic chief is encouraging home mortgage holders to ask their bank for a better home loan deal or find a new bank.

In a recent speech, Reserve Bank of Australia governor Philip Lowe said he’s very pleased to see that more people are switching banks to get lower mortgage interest rates.

“I encourage people who haven’t already taken up the opportunity to do that to look at their mortgage rate and look for a better deal,” he said in a speech in July.

You can check how good your home loan is by using loanScore, a refinancing calculator that can tell you how much you could be saving by switching to a different lender.

In fact, a record number of people are switching banks to refinance their mortgages with a new lender.

At UNO, we have already identified over $484m worth of potential savings for customers, why not see how much you could be saving, today.

“One positive out of the pandemic, I think, is people have been sitting at home and looking for better deals on their mortgages,” Lowe said. “We’ve seen huge amounts of refinancing in the past couple of months. The value of refinance loans was almost as high as the number of loans for newly-purchased properties.

“That’s the first time in our history.”

Big savings from refinancing

In May, a record 21,000 Australian homeowners refinanced $10 billion worth of home loans by moving to different lenders, according to data from the Australian Bureau of Statistics. That’s about double the number from the year before.

June was almost as big, with 20,000 homeowners refinancing $9.3 billion worth of home loans.

There are some big savings to be made from refinancing.

For instance, you might be paying an interest rate of 3.19% on your current loan and by switching lenders you could drop that to 2.19%.

UNO mortgage advisor, Kym Moore calculates that with such an interest rate reduction for a $500,000 mortgage with 25 years to run, monthly repayments would drop from $2,421 to $2,166 – a saving of $255.

Additionally, banks are competing strongly to refinance mortgages, so many are waiving or discounting the fees that usually come with a new loan.

Extra cash supporting housing market

If it looks like you can get a better deal, the next step is to speak to your mortgage broker, who can help you find a great rate with a new lender.

You can email us at customer.care@uno.com.au.

Philip Lowe said the extra cash people are saving is helping them support the housing market, but ultimately the strength of the housing market will come down to the unemployment rate that results from the COVID-19 pandemic.

“My main concern for young people isn’t that they won’t be able to get into the housing market. It’s that they won’t have a job,” he said.

“If they get jobs and they get training, then I think the housing situation will inevitably look after itself one way or another.”



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A M
June 21, 2024
I only have praise from my Uno experience! I was a broker sceptic, having done all of the hard work myself for my first two property purchases and sale. I'm now a proud broker advocate having used UNO (Karis Churchill) for two refinances and purchase. The value add Karis brought cannot be underrated! Not only has Karis got me the best rate, with a bonus cash back (nearly unheard of in this climate), she has done it with the least back-a-forth and with the least administrative burden on me (the thing that can deters people from refinancing to begin with). Karis is always on top of everything. Karis knows her stuff. She is the most responsive of any professional service provider I've ever used (my banker never text with an update at 7pm on a Sunday) without being overbearing. You know she's got your back and in my experience the value speaks for itself. Thank you to the whole UNO team, thank you especially to Karis.
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Leanda Cawdry
June 8, 2024
Very pleased with the outcome of this process, Michael Parsons and his team at UNO were helpful, communicative, and took all the stress out of the process of finding me a refinance deal that met my needs. Would definitely recommend Michael and UNO, and I already have!
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Glen Matthews
May 29, 2024
Regarding UNO Home Loan services. I had great experience with uno home loans, Michael parsons was my broker for UNO Home Loans we had excellent communication throughout the whole home loan application. If I had any questions on home loan application which were many were answered in great detail. He had the time to assist me in filling out endless application forms at anytime through the day or night which made the application process stress free. So I would strongly recommend Michael parsons from UNO Home Loans to try his services you will not be disappointed. Thanks to Michael parsons I have the lowest home loan interest rate I could ever hope for which I particularly ask for. It’s was a pleasure working with him. And will be using his services in the near future.
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Gillian Anderson
May 28, 2024
Thank you to Michael and UNO for their help in securing our home loan. I like the way they break everything down in simple terms to ensure that you can make the right decision. Michael was polite and very patient to help us get things across the line. We are now sitting in our first home away from rental circus. Can't recommend them enough. Thanks Michael and thanks UNO
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Andy Song
May 17, 2024
Amy has been absolutely wonderful as a broker. I would not hesitate one bit in recommending her services.
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Troy H
May 13, 2024
Scott Wilkinson did a great job as my broker. He was very patient and always happy to answer my numerous questions throughout the considerable period of time that it took to secure a suitable property. Would certainly recommend Scott and the team at UNO for anyone seeking a broker.
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Elvin Singh
May 10, 2024
First time I have used a Broker and I must say Andrew Wyers and his team were amazing to work with and handled my refinance from a Big4 bank. He was able to understand my needs and find a lender that will be able to help me grow my investment portfolio. Andrew and his team kept me updated as part of my refinance journey and made the process super easy and I was able to refi to new lender in under 2 weeks. Would highly recommend Andrew.
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Nadine Steffens
April 19, 2024
Scott and the team at Uno are absolutely 💯 amazing. I don't think I could have done my loan on my own. They are highly motivated and I do recommend them.
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Andrew
April 16, 2024
Dealing with Scott Wilkinson was an absolute delight. Scott is tenacious, hard working and readily available. He made a very stressful process for me and my partner smooth sailing. Would highly recommend.
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Liam Sugiono
April 15, 2024
Amy and her team were efficient and knowledgeable as our broker. They were easily contactable and ensured all our needs were met.
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Mike Vincent
April 10, 2024
Andrew is the best broker I have worked with and one of the few people who understands the investment journey from both a personal and professional standpoint. Andrew is an asset to anyone from a first home buyer to a seasoned investor.
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Yu Su
April 9, 2024
Amy was very help and quick respond when I have questions. Really recommended.
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