New home owners most likely to refinance in 2012
Research from LJ Hooker has shown that 46 per cent of first home owners who entered the market less than two years ago are looking to refinance.
The survey conducted by Galaxy Research on behalf of LJ Hooker Finance found that more than one in five (22 per cent) of those active in the property market were looking to refinance their home loan in the near future.
L. Janusz Hooker, Chief Executive of LJ Hooker said, “After the 2011 interest rate cuts, home owners are closely watching the market to see what will happen next. Our research has shown that new home owners are concerned about interest rates and are very much aware that a spike in the cost of living could affect their home loan repayments.”
Of those planning to refinance their home loans, 20 per cent cited interest rates as their primary concern, with a further 17 per cent needing to refinance to consolidate their debts.
When asked about the management of their finances, only 28 per cent of all home owners stated that they tracked spending through a strict budget. Almost half (42 per cent) claimed they were living within their means but felt that an unexpected large bill would put pressure on their finances.
Mr Hooker added, although Australians are taking steps to ensure that they are meeting their financial commitments, new home owners are clearly feeling increased pressure to stay on top of bills and mortgage payments.
“A lot can happen to a family’s living and financial circumstances over two years. New home owners should aim to meet with their broker or lender every twelve months to ensure that their loan product still suits their needs.”
However, not all new home owners are worried about their financial future. Almost one third, 32 per cent, of those looking to refinance were hoping to purchase a second, or investment, property.
Key findings from LJ Hooker Research on refinancers:
- 22 per cent of those in the property market are actively looking to refinance their mortgage
- 20 per cent of those looking to refinance their mortgage are worried about interest rates
- 17 per cent of those looking to refinance their mortgage want to consolidate their debts
- 32 per cent of those looking to refinance their mortgage would like to buy another property/investment property
- Only 14 per cent of those looking to refinance are doing it because they think they can get a better deal
*Galaxy Research conducted on behalf of LJ Hooker Finance in September 2011. The study was conducted among 1017 Australians, aged 18-64 years and over who were active in the property market.