One in five Australians is hoping to purchase a property in the next 12 months, while one in three existing homeowners wants to refinance to get a better deal.
Record-low interest rates and a shift in people’s mindsets, post the outbreak of the COVID-19 pandemic, are behind more Aussies looking to buy property, or refinance existing home loans, according to data from financial comparison group Finder. Population surveys revealed the remote-working revolution has led homebuyers to look at options they mightn’t have considered previously, while the pandemic has made people more conscious of where their money is going, driving greater interest in finding better home loan deals.
House hunting on the rise
Data from Finder indicates that around 20% of Aussies are hunting for real estate or planning to do so in the next 12 months, with the greatest interest displayed by Generation Yi.
Aussies looking to purchase property by age group:ii
- Generation Z (born 1995 or after) – 24%
- Generation Y (born 1980-1994) – 32%
- Generation X (born 1960-1979) – 20%
- Baby Boomers (born 1959 or prior) – 5%
Meanwhile, regional property values have been outperforming those in capital cities, which is in part due to COVID-19 triggering multiple lifestyle changes, including where people want to live, particularly as working from home has become the new norm for many employeesiii.
More people look to refinance
As for those who already have a home loan, one in three is looking to refinance in the next year to get a better deal with their existing provider, or a new provideriv.
Finder said the pandemic has made people assess where every dollar they earn goes and refinancing a mortgage could lead to a leap in savingsv.
Tips for those looking to secure a better deal
There are a number of reasons why you may look to refinance, with saving money and reducing your loan term often two of the big ones, not to mention getting access to better home loan features.
At the same time, it’s important to make sure the financial benefits outweigh the costs. For this reason, it’s a good idea to investigate where costs may apply or be negotiable.
If you’re looking to purchase property or refinance an existing home loan, have a chat to us first as we can help you make a decision that takes your financial situation and long-term goals into consideration.
©AWM Services Pty Ltd. First published January 2021