Rising interest rates continue to drive refinancing
Property refinance volumes grew across NSW, VIC, QLD and WA, with property owners seeking out better deals on their home loan as interest rates continued to rise. 102,669 refinances were recorded in the aforementioned states during the Sep-22 qtr, growth of 1.1% on the prior year.
Rising interest rates had the opposite effect on new loans.
With less property transactions due to the softer market, residential new loan volumes in the Sep-22 qtr shrank 12.0% when compared to the prior quarter and were down 18.6% on the prior year. All states saw double digit drops in new residential loans, with NSW down 26.5% year-on-year.
LVRs for residential new loans hovered around 76.0%.
Average Loan-to-Value Ratios (LVRs) in the eastern states trended below 80%. Notably in NSW and VIC, LVRs for regional properties were slightly higher than that for metro properties.