Three key drivers behind refinancing

By www.theadviser.com.au By: Jessica Darnbrough, 23 July 2010

While much of the rhetoric in the press suggests borrowers are largely refinancing for a better rate, new data has revealed that there are actually three main drivers behind refinancing activity.

According to The Adviser’s latest weekly straw poll, there is more to refinancing than meets the eye.

Of the 290 respondents to the survey, the majority of brokers pegged debt consolidation as the main driver behind refinancing.

37.2 per cent of brokers said debt consolidation was the number one reason for refinancing, while 29 per cent said it was a better rate, and 25.9 per cent said it was to release equity.