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Lendi Home Loan Snapshot: The pandemic effect

This Lendi Home Loan Snapshot tracks Australian borrower activity across Lendi’s panel of more than 38 Australian banks and lenders between 1 March and 31 May 2020 and compares this to pre-pandemic conditions over the 12 months to 29 February 2020.

To understand what is happening in the market now, loan applications submitted for approval have been analysed. The sample consisted of more than 12,500 loan applications submitted.

Changing borrower preferences - lender type

Borrower preferences shifted to favour the big four lenders, with refinancers leading the trend.

% of borrowers choosing a big four lender1 March 2019 to 29 Feb 20203 months to end May 2020
ALL loan applications16%38%
Refinance14%48%
New Purchase16%21%
Owner Occupier15%36%
Investor17%47%
% of refi borrowers choosing a big four lender1 March 2019 to 29 Feb 20203 months to end May 2020
Refinance /Owner Occupier13%46%
Refinance/Investor16%53%

Changing borrower preferences - fixed rates

With fixed rates falling to new lows, there was notable growth in borrowers opting to fix rates over the three months to the end of May, when compared to the 12 months prior to the pandemic.

% of borrowers choosing fixed rates1 March 2019 to 29 Feb 20203 months to end May 2020
ALL loan applications15%26%
Refinance14%28%
New Purchase15%25%
Owner Occupier14%24%
Investor19%33%

Changing borrower preferences - fixed rates

With fixed rates falling to new lows, there was notable growth in borrowers opting to fix rates over the three months to the end of May, when compared to the 12 months prior to the pandemic.

% of borrowers choosing fixed rates1 March 2019 to 29 Feb 20203 months to end May 2020
ALL loan applications15%26%
Refinance14%28%
New Purchase15%25%
Owner Occupier14%24%
Investor19%33%

Unwavering borrower preferences - repayment type

Despite the widespread economic impact of COVID-19, the proportion of borrowers selecting interest only loans remained flat during the first three months of the pandemic.

% of borrowers choosing IO1 March 2019 to 29 Feb 20203 months to end May 2020
ALL loan applications6%7%
Refinance8%8%
New Purchase4%2%
Owner Occupier1%1%
Investor25%27%

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The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.

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Tags: rba cash rate, reserve bank, interest rate, refinance, new purchase

Check today's low rates

Tell us what you are looking for and see if you can save.

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Check today's low rates

Tell us what you are looking for and see if you can save.

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Important legal stuff

Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.
# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 35 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 35% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors. Lendi's board is majority independent and non-executive.
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
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