People ‘Require $3K Savings to Swap Home Loans’

Most real estate owners would not move their home loans to another lender unless they could save a minimum of $3,000 per year.

That's the result of a poll conducted by Loan Market, which found that of 412 respondents, 51 per cent said they would make the move if they were able to derive a saving of more than $2,999 per year.

Loan Market corporate spokesperson Paul Smith said that due to a number of factors, such as low interest rates and discounts on offer from various lenders, refinancing is becoming quite strong in the home finance sector.

He explained: "With a downward outlook on interest rates over the past two years, there's been continual pressure on lenders to make the right moves to remain competitive.

"This has created saving opportunities for homeowners who have negotiated between lenders or even their own lender, for a better deal."

The Loan Market spokesperson warned that long-term goals and the current financial situation of the borrower should be carefully examined before making a switch.

A new loan could see additional money saved – depending on the product – with perhaps an offset account (a transactional account which is linked to a loan) offering additional discounts.