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Mortgage Insights Report | Refinances continue to surge

By PEXA • 22 Nov 2023

Mortgage Insights Report | Refinances continue to surge

Property refinances outpaced new loans in the Sep-23 quarter, as sales activity experienced a seasonal lull during the winter months, according to PEXA’s latest Mortgage Insights report. 
The report found existing borrowers continued to refinance in record numbers as they adjusted to higher interest rates and the possibility of further rate increases in FY24, with the number of national refinances climbing to a new record high of 125,435 in the Sep-23 quarter, up 13.1% year-on-year.  
Conversely, new loan volumes were down 4.3% on the prior quarter and down 7.6% on the prior year, with only 118,046 new loans issued during the quarter.  
Commenting on the research, PEXA’s Head of Research, Mike Gill, said: “The surge in refinances is not surprising in the current environment as borrowers continue to look for a better deal on their home loans.  
“We also expect to see new lending activity recover in the Dec-23 quarter, along with increased sales activity during the typically strong spring selling season,” he said.  

New loan highlights 

  • VIC recorded 30,642 residential new loans in the Sep-23 Qtr, the most of any state. NSW and QLD were just behind with 30,211 and 31,132, respectively.  
  • Median new loan values increased in all eastern states. This was driven by capital cities, led by Greater Sydney which was up 4.6% in the Sep-23 Qtr to $735,681.  
  • A total of $66.7B of new residential lending was issued nationally in the Sep-23 Qtr. NSW recorded the highest aggregate value of new loans with $24.8B, followed by VIC with $18.3B. 

Property refinance highlights 

  • Nationally, refinances climbed to a new record high, with double digit year-on-year growth. WA grew fastest, up 25.3% to 13,256 in the Sep-23 Qtr. 
  • Once again VIC recorded the most refinances with 40,921 during the recent quarter. NSW was close behind with refinances jumping 6.3% on the prior quarter to 37,991. 
  • A total of $60.6B of property was refinanced nationally in the Sep-23 Qtr. NSW recorded the highest value of any state with $22.0B, followed by VIC with $19.9B. 

For more information, download our full Mortgage Insights Report. 

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