More Borrowers Switching Lenders

More Borrowers Switching Lenders

Property owners are shopping around for better finance deals, with Australian Bureau of Statistics figures revealing $14.3 billion worth of refinancing in January.

Of that, $9.2 billion was refinancing by owner occupiers with the remaining $5.1 billion from investors.

The figures show refinancing levels are 18.7% higher than at the same time in 2021 while a record $181 billion worth of loans were refinanced in 2021.

Those considering taking advantage of good rates on offer, will need a loan to value ratio of more than 80%, while for borrowers locked into a fixed interest rate the penalty for breaking that may not make it worthwhile.

Most banks will seriously consider requests from current borrowers to match fees offered by other banks, in an effort to keep their customers on their books.

Those who do achieve lower interest rates can shave years off their loans and save thousands of dollars in the long run if they maintain the higher level of repayments.

Auctions Results Defy Bad Weather

Flooding and torrential downpours along the east coast of Australia did little to dampen enthusiasm for the auction market last weekend.

The number of properties offered for auction dropped slightly compared with the previous week (3,386) but there were still a healthy 2,945 properties put under the hammer.

CoreLogic results show Sydney recorded a slightly lower clearance rate of 75% while Melbourne was also down slightly to 71%.

Even though Brisbane was hard hit by flooding it recorded an auction clearance rate of 70% from 180 auctions, while Adelaide recorded the highest clearance rate of 82% based on 194 auctions.

Canberra’s clearance rate was 76% based on 140 auctions.

Louis Christopher of SQM Research says there are still more properties being taken to auction than at the same time last year.

He says the drop in the number of properties being taken to auction last week was reflective of the general seasonal slowdown in auctions at the start of March.

Rents Are Rising In All Sectors

Inner city rental markets are bouncing back with the opening of international borders.

Cameron Kusher of REA Group’s PropTrack says while inner city units experienced some of the biggest price drops at the start of the pandemic, that is now set to turn around.

“With Australia’s domestic and international borders now largely reopening, universities returning to in-person lectures and people returning to offices throughout 2022, we expect demand for inner city rentals to continue to lift,” Kusher says.

CoreLogic figures show capital cities, regional areas, houses and units all experienced rent rises in the past quarter.

Rents are increasing across Australia because vacancy rates have hit a 16-year low, according to Louis Christopher of SQM Research.

“All this represents an acute shortage of rental properties,” he says. “And the shortage has already been translating into large surges in weekly rents across the country. It is now very likely market rents will rise by over 10% this year.”

Rent Stress Up, Mortgage Stress Down

The tight rental market means the number of people in rental stress increased substantially in the past 12 months.

At the same time, according to ME Bank’s Household Financial Comfort Report, mortgage stress reduced.

The report surveyed 1,500 Australian households and found 67% were in rental stress as their rent exceeded a third of their household disposable income.

Almost a fifth of renters were in extreme rental stress, putting more than 60% of their income towards rent. That level was 12% just 12 months ago.

The report says rents are rising faster than incomes and renters are struggling to keep up with that and other cost-of-living increases.

It found the number of owners dealing with mortgage stress dropped to 35%, compared with 37% a year ago.

ME consulting economist Jeff Oughton says that, on the surface, the financial comfort of the average Australian looks better than ever – but it is fragile.

“It has begun to fall for many households,” he says.

Shortages Push Up New House Costs

The average cost of a new home increased by 19.6% in the past year as a result of surging labour and material costs.

Australian Bureau of Statistics figures show year-on-year inflation in new house values hit the highest rate in more than 30 years.

The rising costs have resulted in a number of building firms going into liquidation or reporting losses.

The Simonds Group, one of Australia’s largest home builders, reported a loss for the six months to December.

Total new dwelling approvals dropped 28% but many builders have full workbooks trying to deliver houses they signed up under fixed price contracts under the Federal Government’s HomeBuilder scheme.

BIS Oxford Economics principal economist Tim Hibbert says the backlog would take some time to clear and would likely continue well into 2023.

“The cost growth profile is going to be strong into 2022 – well into double digits nationally for houses and that’s on top of a pretty frothy 2021,” he says.

Quote Of The Week

“With Australia’s domestic and international borders now largely reopening, universities returning to in-person lectures and people returning to offices throughout 2022, we expect demand for inner city rentals to continue to lift.”

Cameron Kusher of REA Group’s PropTrack

Thinking of buying an investment property? Book a free consultation with a Reventon property advisor today!

Talk to the Reventon team and we’ll give you all the guidance you need to be a successful at investing your money.

Additional Resources​

Reventon Residential – For all property sales, property management and property rental related services, our well respected team can help you.

Reventon Investments – Residential Property Investment. We help everyday Australians build wealth safely through property investment. Book a free consulation today.

Reventon Finance – For all your mortgage and finance needs. Our multi-award-winning finance team can help you with home loans, investment loans, mortgage refinance and more. Have a chat to a finance specialist today.



Latest Posts

Free Resources

Social Media

Your Name *
Phone Number *
Email Address
Cover Letter
Maximum file size: 5 MB
Maximum file size: 5 MB



Book a free one-one-one consultation with our qualified, award-winning experts today!

Brick by Brick starts construction

Lead With Kindness #LWK23

$1 billion under management


Add Your Heading Text Here

Download our full guide

A valid Australian mobile phone number is required to access the password to open this PDF.

Format your mobile as follows: +61 412 456 789

The Legendary Luncheons

Record-Breaking 5th Year Vinnies CEO Sleepout

The Inaugural Lead With Kindness Event (#LWK)

To kick off our most special Vinnie’s campaign ever, we teamed up with the incredibly talented musicians Matt Charles and Andrew Loadsman to get into the studio and record our charity anthem ‘A Little Means a Lot’. Thanks so much to Mark D’Angelo and the Backlot Studios for bringing this poem to life. Still gives us chills everytime.

A Little Means A Lot

Brick By Brick

Reventon Snooker Academy

The New Reventon Office

Reventon Raises Over $100K For Vinnies CEO Sleepout

Chris Christofi once again spent a night sleeping on the streets for his 4th Vinnie’s CEO sleepout. After raising progressively more and more in previous years, Chris placed 4th amongst CEO’ss nationally after raising over $113,000, after Chris pledged to match ever donation dollar for dollar.

Despite being a virtual event this year owing to covid restrictions, Vinnie’s set a new donation record with $9.4 million raised nationally.

Chris pledged that the following year, he would be the first Vinnie’s CEO to raise over $250,000.

Vinnies’ CEO Sleepout

Chris takes part in his first Vinnies CEP Sleepout. He exceeds his $40,000 target by raising $40,185 placing him 12th out of 1,462 CEO’s nationwide and in the top $1% of fundraisers across Australia.

You can check out Chris’ first ever LinkedIn post talking about his experiences on that first sleepout by clicking here. 

Chris’ Second Vinnies CEO Sleepout

After raising over $40,000 the previous year, Chris and the Reventon team are determined to beat that, and this year manage to beat their target of $60,000, raising $60,564 for homeless Victorians, after Chris promised to match every dollar donation with 50c of his own money. This year Vinnies hit a new record of $7.87 million nationally.

Chris Christofi On His Third Vinnie's CEO Sleepout

After raising over $60,000 in 2019, this year Chris and Reventon manage to easily clear their target of $80,000 and raised $82,177 after Chris vowed to match ever dollar donated with 75c of his own money.

Matt Charles from We Gift Wrap worked with Chris to produce a song raising awareness of Chris campaign.

Reventon Accounting Launch

A range of financial, accounting and property services are brought under the Reventon banner   

  • Preparation of Financial Report and Tax Return 
  • Tax Planning  
  • Business Activity Statement, FBT Return, and Tax Instalment 
  • Business Restructuring and Setting Up a new Entity

Reventon accounting is proud to provide the following services:

  1. Preparation of Financial Report and Tax Return – As part of our annual tax-related compliance work, our team is proactively establishing the best tax minimisation models for you, and also, ensuring tax compliance on your account. 
  2. Tax Planning – Everyone need the ultimate planning and strategy in all parts of life, especially Tax. Our highly experience team will build a personalised  tax strategy and minimisation according to your situation and needs and ensure you a maximum advantages on any investment asset transactions. 
  3. Business Activity Statement, FBT Return, and Tax Installment –  Small business owners spend hours every week dealing with Tax Requirements (BAS, FBT, and Tax Installment) which is a valuable time that you could have spent growing the business and the profit. Let our expert team to take this hassle away from your shoulder so you can build a valuable business for your retirement. 
  4. Business Restructuring and Setting Up a new Entity – Entity structure is one of the five foundations of a business. Our knowledgeable team will ensure you to have a solid foundation so you can focus on building a business on top of it. Your investment is your business too, don’t overlook them. 
  5. Bookkeeping, Payroll, and other Business Compliance – Our team takes ownership on anything that we do. We ensure high quality work and compliance in any levels of Accounting and Tax Regulations – ASIC Corporate compliance, workcover insurance, business-required licensing and insurances, Single Touch Payroll and payroll-tax, Superannuation Tax and Regulations. 
10 tips for successful property investment PDF
How to Buy an investment property without a deposit
Property Investment in Bendigo
What's In Store For Residential Real Estate In 2022
Property Investment in South East Queensland
10 tips for successful property investment PDF
How to Buy an investment property without a deposit
Property Investment in Bendigo
Property Investment in South East Queensland
What's In Store For Residential Real Estate In 2022
Guide To Your First Investment Property

Online budget planner

Have trouble sticking to a budget?

With the budget planner, you can log your incoming and outgoing expenses to keep track of your finances and set saving goals.

Check out our other calculators too

Loan repayment calculator​

Want to work out your repayments on a home loan?

Enter the details of your loan and discover how much you’ll be paying each month.

Check out our other calculators too

Borrowing-power calculator

How much could you borrow on a home loan?

Enter your income details and spending habits to discover your borrowing-power on a future home loan.

Check out our other calculators too

Stamp duty calculator

Confused by stamp duty?

Enter the property’s value and state or territory to discover exactly which fees and charges you’ll be required to pay.

Check out our other calculators too

Income tax calculator

Want a breakdown of your income tax?

Drag the controller for your income and discover your take home pay and tax rates.

Content Unavailable

We’re making some changes to our website and the content you are looking for is currently unavailable. Please check back later or book a free consultation by clicking on the button below.