News release – 1 March 2022
A record high 363,978 property refinances were recorded in 2021 nationwide, up 28% from 2020, according to the latest analysis released today by PEXA Insights, the research arm of PEXA – Australia’s leading digital property settlement platform.
The PEXA Refinance Report found that all mainland states posted double digit year-on-year increases in 2021, with Victoria leading the way for total volume with 125,071 refinances (up 19% year-on-year). It was on the other side of the country where the strongest growth was seen however, with Western Australia's tallying 29,850 refinances, up a huge 59% from 2020.
New South Wales experienced 29% in annual growth for refinances with 121,640, Queensland was up 36% year-on-year with 62,110 refinances, and South Australia witnessed a healthy 27% spike with 25,307 refinances.
PEXA’s Refinance Index hit a peak of 168.3 points in October and remained above 160 points for the final three months of 2021.
PEXA Insights’ Head of Research, Mike Gill, said: “Record low interest rates, combined with increased speculation within the market of imminent rate rises, has driven property owners to refinance right across the country, particularly in the second half of the year.
“We saw refinancing activity was most common in more affordable areas within capital city postcodes, especially those with high levels of new builds.”
The Report also analyses the monthly net increase or decrease in mortgages for lenders, with non-major lenders moving to a strong winning position for refinances in 2021.
“December saw the major banks move into their weakest position for refinances in two years, falling behind non-major lenders in all mainland states except for Western Australia,” said Mr Gill.
For more information, visit https://www.pexa.com.au/insights.