Home loan refinancing jumps but many find they have to sell up

Online mortgage broking market place LoanDolphin has seen the number of loan enquiries increase fourfold to more than $1.5 billion in the last year as many home owners seek to refinance.

LoanDolphin founders Ranin Mendis and Rod Dutra have been analysing their data on borrowers who submit requests for loans on their website which mortgage brokers compete for.

In the last 12 months, as property prices have slipped, lending rates risen (for some) and the royal commission into banking crimped lending practices, LoanDolphin has seen a huge increase in the number of enquiries for refinancing.

“Many borrowers are looking to refinance as they’re starting to feel the pinch from rates,” Mr Mendis said.

“The softening property valuations and tightening credit standards are making this increasingly difficult. In some instances, borrowers with a portfolio of three or more properties are selling property to ease the burden and capacity to refinance.”

“We’ve seen many instances where the brokers are unable to service and customers have opted to sell one of the properties so that they could refinance to a lower rate.”

He said this was only going to get worse.

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Source: Home loan refinancing jumps but many find they have to sell up | afr.com