With household budgets still under pressure and interest rates remaining elevated, many homeowners are reassessing whether their current loan structure is still doing the job.
The Reserve Bank has indicated that future rate moves will be guided by inflation and economic data, meaning further increases can’t be ruled out. In a market where rates may stay higher (or shift again), reviewing your loan can help ensure it’s set up to handle change, not just today’s repayments.
This guide breaks down what refinancing actually involves, why more Australians are reviewing their home loans in the current rate environment, and how to work out whether refinancing could make sense for your situation.
Why 2026 could be the right time to refinance
The tide is turned for borrowers after multiple cash rate cuts in 2025. With the Reserve Bank has lowering the official cash rate to 3.60% as of December 2025.
Inflation is easing, household spending is softening, and the big four banks are tipping further cuts before the year's out. That's good news, but here's the catch: not every lender passes on those savings.
So, more homeowners are making the smart move to refinance and take back control.
You might also be interested in: When and when not to refinance your home loan
Refinancing is surging, and the data backs it up
Refinancing activity picked up pace through 2025 as borrowers responded to higher rates, tighter household budgets and shifting lender competition.
Owner-occupiers led much of that movement. Australian Bureau of Statistics data shows that refinancing values rose steadily across 2025, with September recording a 6.4% quarterly increase. More than $58.2 billion in owner-occupier loans were refinanced in the quarter.
That reflects thousands of Australians reassessing their loans, whether to manage repayments, access different features, or reset their loan structure in a higher-rate environment.
Investor activity also lifted during 2025, with refinancing accounting for around 17.6% of new investor lending. For many investors, refinancing was less about rates alone and more about accessing equity, switching to interest-only periods, or restructuring loans for a longer-term strategy.
The takeaway is simple: when lending conditions change, standing still can have a cost. A refinance health check can help reveal options you may not have considered. An Aussie Broker can compare loans across more than 25 lenders and help you assess what suits your goals and circumstances, not just what’s cheapest on paper.
That's thousands of Aussies switching to better rates, improved features, or both.
It's not just homeowners making moves. Investor refinancing also climbed to 10.5%, as savvy investors look to unlock equity, access interest-only options, or structure their loans for long-term gain.
The bottom line? In a market that's shifting, doing nothing could cost you. A quick refinance health check could uncover options you didn't know you had. An Aussie Broker can help you compare 25+ lenders to find what's right for your goals, not someone else's.
How much could you save by refinancing?
There’s been a lot of talk about refinancing lately and for good reasons. With interest rates starting to ease and lenders sharpening their offers, more Australians are jumping on the opportunity to take back control of their home loan. The potential savings? They’re worth a closer look.
Let’s try to run the numbers. For example, you’ve got a $650,000 home loan.
Before refinancing | After refinancing | |
|---|---|---|
Interest rate | 6.24% | 5.65% |
Monthly repayments | $3,998 | $3,752 |
Savings* | — | $246 per month (nearly $3,000 over a year) |
*Figures are indicative only. Actual fees and charges vary by state, property type, lender and personal circumstances.
Those extra dollars each month could mean breathing room in your budget, a faster track to financial goals, or simply less pressure when cost-of-living stress kicks in.
The long-term savings also add up.
Refinancing isn’t just about what you save each month; it’s about what you could save across the life of your loan, and the difference can be substantial. Let’s say you keep your repayments the same after refinancing but reduce your loan term.
Here’s how that might play out:
Before refinancing | After refinancing | |
Loan term | 30 years | 26 years |
Interest paid | $789,000 | $593,000 |
Years saved | — | 4 years |
Interest saved** | — | $107,000 |
**Figures are indicative only. Actual fees and charges vary by state, property type, lender and personal circumstances.
That’s more than $100,000 shaved off your total repayments just by adjusting your strategy.
Want to see what this looks like for you? Try our borrowing power calculator or book a free home loan health check with an Aussie Broker.
How to save money refinancing your mortgage
Refinancing your home loan can be a smart strategy to save money. Here are a few ways you could potentially save by refinancing your home loan:
1. Switching home loans to a lower interest rate.
The data above shows that many mortgage holders are still overpaying on their home loans and there are potentially lower mortgage rates to explore.
A lower interest rate can result in significant savings over the life of your loan and could even potentially shorten your loan term.
Even a seemingly insignificant reduction can mean huge savings in interest.
An Aussie Broker can help negotiate your interest rate with a new or even your existing lender.
2. Getting a low-fee home loan.
A low-fee home loan is a mortgage option with minimal upfront costs and ongoing fees.
Home loans typically come with various fees, such as application fees, monthly service and annual fees and closing costs.
A low-fee home loan is designed to keep these costs as low as possible for the borrower.
3. Taking advantage of rewards and incentives.
Many lenders offer discounts or incentives to new borrowers and refinances, such as cashback offers.
While it’s important to weigh the costs and gains of refinancing and a cashback incentive shouldn’t be the only consideration when refinancing, it could be the cherry on top of a better home loan deal.
Remember, refinancing your mortgage involves considering various factors and understanding your individual financial situation.
It's a smart move to ask your local Aussie Broker or financial advisor for support throughout the process.
Why many borrowers are reassessing their home loans
After several years of rising interest rates and higher repayments for many Australians, borrowers are taking a closer look at whether their home loan still suits their situation.
Higher rates, fixed-rate expiries and continued cost-of-living pressure have made loan structure an increasingly important consideration alongside the interest rate itself. Rather than waiting for conditions to change, borrowers are increasingly reviewing how their loan fits their cash flow, features and longer-term plans.
For some, the trigger is a noticeable increase in repayments after a fixed rate ends. For others, it’s all about flexibility; access to features like offset accounts, redraw or split loans that better reflect how they manage money day to day. Common reasons borrowers reassess their loans include:
Fixed-rate roll-offs: Moving from historically low fixed rates to higher variable rates can materially change repayments.
Loan features: Some borrowers want offsets, redraw facilities or split loans to improve control and flexibility.
Equity access: Others review their loan to understand whether available equity could support renovations, investing or major life expenses.
With lenders competing across pricing, features and refinance incentives, comparing options can highlight differences that aren’t always obvious from your current loan.
An Aussie Broker can help you review your existing loan, compare suitable alternatives and assess whether refinancing could improve your position based on your circumstances, not assumptions.
Using equity as part of a refinance strategy
For homeowners who’ve owned their property for several years, refinancing is often about more than lowering repayments. It can also be a way to reassess how home equity fits into broader financial goals. Equity can build over time through a combination of loan repayments and changes in property values.
Rather than leaving it unused, some borrowers choose to access part of that equity when refinancing, depending on lender criteria, risk comfort and intended use.
Common ways Australians use equity include:
Renovations: Improving liveability or long-term property value.
Property investment: Using equity as part of a deposit for an investment property.
Life-stage needs: Funding education costs, medical expenses or business opportunities.
There’s no requirement to access equity all at once. Depending on how a loan is structured, borrowers may consider options such as:
Top-up loans: Increasing the loan balance to access a portion of equity upfront.
Offset or redraw: Keeping funds accessible while reducing interest when they’re not in use.
Every situation is different. An Aussie Broker can help you understand how much equity you may be able to access, the risks involved, and how to structure a loan that supports your goals without taking on more debt than you’re comfortable with.
What refinancing could mean for you in 2026
In 2026, refinancing isn’t about chasing the lowest advertised rate or reacting to short-term market moves. It’s about checking whether your home loan is still structured to suit your circumstances as interest rates, lender pricing and household costs continue to evolve.
Loan features, flexibility and overall structure matter just as much as the rate itself. Borrowers who regularly review their loans are often better placed to manage repayments, adapt to changes and make informed decisions about equity or future plans. For others, staying on an outdated loan can mean quietly paying more than necessary over time.
Whether you’re rolling off a fixed rate, reassessing your budget, or considering a different loan setup, the key is understanding your options before committing to a change.
An Aussie Broker can help you review your current loan, compare suitable options from more than 25 lenders, and assess whether refinancing could make sense for your situation based on your goals, eligibility and the numbers.