Home refinancing hits a record as new housing loans decline

The news: Australian's are on the hunt for better deals on home loans, as external refinancing values rose 5.4% in July to hit a record $21.5 billion, according to ABS lending data.

The numbers: The total value of owner-occupier refinancing rose 4.9% to a record high of $14.6 billion, 21.8% higher than a year ago, while investor refinancing rose 6.5% month on month to $7 billion. However, the value of new housing loans fell 1.2% over the month and are down 14.1% on the preceding year. Personal and fixed term loans increased 4.7% in July, compared to a 6.8% drop in June, up 9.2% year on year.

The context: High interest rates are incentivising mortgage-holders to shop around for better deals from lenders, while cost pressures are boosting the need for quick credit. New home owner figures were unable to be published this month due to reporting issues, the ABS said.