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Data & Insights

Record property refinances in FY22

By PEXA Insights • Aug 2022

More Australians than ever are adopting a proactive approach to managing their home loan amidst rising interest rates, with a record 331,976 property refinances recorded across Queensland, New South Wales and Victoria in FY22, up 29% on the previous 12-month period, according to the latest analysis released today by PEXA Insights.

The PEXA Mortgage Insights Report found that all three major eastern states posted significant year-on-year increases in 2022, with Victoria recording the highest volume of residential and commercial refinances at 131,287 (up 23.7% year-on-year), followed by New South Wales with 127,654 (up 25.8% year-on-year).

Queensland experienced the highest growth in refinances with 73,035 (up 49.8% year-on-year) completed during the year. The Sunshine State was also the first to reach above 200 points on PEXA’s Refinance Index, coinciding with heightened buying activity and rises to the official cash rate in both May and June 2022. 

All three eastern states recorded in excess of 150,000 new residential loans each, with Queensland leading the way again with 159,894 home loans completed in FY22. More than 472,304 new home loans being taken out across the eastern states in FY22. Victoria posted the highest growth in both new residential loans (157,666 loans – up 10.4% year-on-year) and new commercial loans (7,071 loans – up 35.8%).

PEXA Insights’ Head of Research, Mike Gill, said: “We have seen heightened refinancing activity over several years, and while initially Australians were taking advantage of record low interest rates, there is now a clear correlation between the high numbers we saw during FY22 and the Reserve Bank of Australia’s determination to lift interest rates twice before the close of the financial year.

“The record levels of new loans coincide with the strong buying and selling activity witnessed throughout the first half of FY22, in particular in Queensland which has experienced a state-based property boom across home buying and selling (as previously announced).”

PEXA’s latest report also illustrates net increases and decreases for lenders of both new loans and refinances across the financial year, with non-major lenders successful in winning more refinances (residential and commercial) than they lost in Queensland, News South Wales and Victoria across FY22.

“We saw a highly competitive landscape between major and non-major banks for new loans across all three eastern states, however non-major banks recorded higher win/loss numbers for refinances in the same regions. Strong competition within the lending market can only lead to positive outcomes for consumers,” said Mr Gill.

For more information, visit PEXA Data & Insights

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