Mortgage refinancing surges as interest rates dive, but can you get a home loan during coronavirus?

Swa Rath is smiling all the way to the bank.

She just saved thousands of dollars a year on her two mortgages by taking advantage of competition between home loan lenders who are keen to lock in customers as the country buckles down for a recession.

Ms Rath has an investment property in South Melbourne and a second mortgage for the home where she lives, in Sydney’s inner-west suburb of Ashfield.

Until recently, both mortgages were with separate lenders.

“We started to explore options [to refinance] in November or December last year, but only finalised things in the last month,” she told The Business.

The timing worked in her favour.

After she began looking to refinance, the Reserve Bank, in its efforts to ward off the worst of the economic crisis unfolding from the COVID-19 pandemic, dropped the official cash rate from 0.75 per cent to the record low rate of 0.25 per cent.

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