Coming Up Thu 9:00 PM  AEDT
Coming Up Live in 
Live
Punjabi radio
SBS PUNJABI

COVID impact on property market: Why are so many people refinancing their home loans?

Mortgage rates likely to remain at record lows well into 2022. Source: Unsplash/Tierra Mallorca

The latest figures from the Australian Bureau of Statistics (ABS) reveal that mortgage refinancing has skyrocketed to an all-time high in June, 2021.

With the total value of refinanced loans hitting $16.24 billion in June, Melbourne-based mortgage broker Sartaj Singh explains why many property owners have refinanced their existing home loans.

“Many of the major home loan providers are offering cashback schemes and considerably lower rates after the Reserve Bank of Australia slashed their interest rates to an all-time low. Property owners are trying to avail this opportunity by refinancing their home loans,” he said.


Highlights:

  • Mortgage refinancing has seen an upward trend during the COVID-19 pandemic.
  • The latest figures from ABS reveal refinanced loans hit $16.24 billion in the month of June.
  • Experts reveal major reasons why people refinance their home loans. 

Mr Singh said that the COVID-19 pandemic has also prompted many families to reconsider their finances.

“People have also been thinking about benefitting after a massive surge in the property prices compared to the pre-COVID times.

“When you refinance, you often get to access the built-up equity of your home, which is normally the difference between the market value of your home and your remaining loan balance. This equity can then be used for buying another property or to any other advantage," he explained.

Know major reasons to refinance your home loan in 2021.
Know major reasons to refinance your home loan in 2021.
Pexels

Mr Singh, however, advised that property owners must take a cautious approach and shouldn’t get lured into the ‘cashback schemes’ while refinancing.

“Mortgage is a very long-term financial commitment. You must check your financial standing and future needs and opt for a home loan that best fits their needs rather than just following a trend,” he said.

Click on the audio button to listen to the full conversation with Mr Singh.

COVID impact on property market: Why are so many people refinancing their home loans?
00:00 00:00


People in Australia must stay at least 1.5 meters away from others. Check your state’s restrictions on gathering limits.

If you are experiencing cold or flu symptoms, stay home and arrange a test by calling your doctor or contact the Coronavirus Health Information Hotline on 1800 020 080. News and information is available in 63 languages at sbs.com.au/coronavirus

Listen to SBS Punjabi Monday to Friday at 9 pm. Follow us on Facebook and Twitter.  

Coming up next

# TITLE RELEASED TIME MORE
COVID impact on property market: Why are so many people refinancing their home loans? 23/08/2021 12:15 ...
SBS Punjabi Australia News: Wednesday 27th Oct 2021 27/10/2021 10:00 ...
Australia to prioritise visitor visa processing for parents of citizens and permanent residents 27/10/2021 11:00 ...
Sydney-based Punjabi Sahitak Forum's new initiative sparks conversation on Sikh history and social issues 27/10/2021 13:00 ...
Skin cancer in Australia: What are the risks and how to protect yourself 27/10/2021 10:24 ...
Pakistan Diary: Not a good time for improving ties with India after World Cup thrashing, says PM Imran Khan 27/10/2021 07:35 ...
Sidhu Moosewala says 'Yes I Am A Student' sheds light on the plight of international students 27/10/2021 11:15 ...
New guidelines outline ways legal workplaces can improve cultural diversity 27/10/2021 09:00 ...
SBS Punjabi Australia News: Tuesday 26 Oct 2021 26/10/2021 11:15 ...
Punjabi Diary: Heavy rain and hailstorms damage crops, delay paddy harvest in the state 26/10/2021 08:00 ...
View More