Thirty-six per cent of property owners are more likely to refinance now the cash rate has dropped, a Mortgage Choice survey has found.
The 2011 Savings & Spendings Insights Survey also found it was Generation Y that would be most likely to seek out loans after the Reserve Bank cut the cash rate by 25 basis points to 4.5 per cent.
Mortgage Choice spokesperson Kristy Sheppard said: “I hope the 64 per cent of our survey respondents who weren’t more likely to consider refinancing if rates dropped have at least weighed up their home loan options recently, because the market’s constantly changing.”
Buyer anxiety will be reduced and confidence-driven stimulus injected into the economy, Ms Sheppard added.
Lowered debt should also result in significant savings for homes.
“It’s amazing what a difference a drop in a home loan’s rate and fees can make to its overall cost. You might be able to save tens of thousands of dollars in interest and cut years off your loan term,” she said.