Home loan refinancing is set to be the next major source of housing finance for 2011 based on a survey conducted by mortgage broker Loan Market.

The survey shows that majority of the 137 brokers questioned or about 54 percent said refinancing would dominate the home finance market this year while 39 percent said that investors would take majority.

Loan Market chief operating officer Dean Rushton estimates that only 6 percent of first home buyers would be most active and 1 percent thought finance for construction/renovation would surge.

“Our brokers clearly don’t see any re-emergence of first home buyers, who were highly active during late 2008 and 2009 while there were greater government incentives on offer,” Rushton said.

The Reserve Bank of Australia decision to raise official interest rates have made home owners think twice about financing as well as consider what various banks have to offer before committing.

“Australians traditionally are reluctant to change lenders but events of the past 12 months have changed their outlook,” he said. “Home owners on an average $300,000 mortgage can save up to $3,000 a year if they can be bothered switching lenders to get a better home loan deals.

He added:“There can be as much as a percentage point difference between the variable home mortgage rates currently on offer and people are starting to realise it’s worth shopping around.”

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