Key takeaways
New Aussie internal data found 77.9% of like-for-like refinancers reduced their calculated monthly repayments
Median monthly savings reached $151, or around $1,806 per year
Savings vary depending on your loan, lender and refinancing costs
Compare your current loan with today's options to understand what refinancing could mean for you
If you've had the same home loan for several years, you may have wondered whether refinancing could reduce your repayments.
The answer depends on several factors, including your current interest rate, remaining loan balance, refinancing costs and the options available to you today.
For some homeowners, even a relatively small reduction in interest rate can make a noticeable difference over the life of a loan. For others, the savings may be smaller, or refinancing may not be the right option at all.
The key is understanding how your current loan compares with what's available today.
What is refinancing?
Refinancing involves replacing your existing home loan with a new one, usually with different loan terms, features or an interest rate that better suits your circumstances.
Your new loan pays out your existing mortgage, and you begin making repayments on the new loan instead.
Depending on your situation, refinancing may help reduce your repayments, lower the amount of interest you pay over time or provide access to different loan features.
Why consider refinancing now?
Home loan rates, lender offers and your own financial circumstances can all change over time. Even if you looked at refinancing previously, your options today may be different.
Rather than assuming your existing loan is still competitive, it can be worth comparing what's currently available and understanding how any changes could affect your repayments.
What did Aussie borrowers save when refinancing?
One of the most common questions homeowners ask is how much they could actually save by refinancing.
While every borrower's situation is different, new Aussie internal refinance application data provides useful insight into the repayment outcomes achieved by some borrowers.
The analysis looked at settled refinance applications between July 2024 and May 2026. It focused on borrowers who completed what Aussie refers to as a like-for-like refinance.
In simple terms, this means refinancing a similar loan amount without purchasing another property.
Looking at borrowers with broadly similar loan balances provides a clearer comparison of repayment outcomes because the overall debt level remains largely unchanged.
Metric | Jul 2024-Jun 2025 | Jul 2025-May 2026 |
|---|---|---|
Share reducing repayments | 73.5% | 77.9% |
Median monthly saving | $125 | $151 |
Median annual saving | $1,502 | $1,806 |
Median loan amount | $470,000 | $511,000 |
Source: Aussie internal refinance application data
In the latest period analysed, almost 78% of like-for-like refinancers reduced their calculated monthly repayments. Median monthly savings also increased from $125 to $151 per month, equivalent to around $1,806 per year.
Individual outcomes will vary depending on factors such as your loan balance, lender, available interest rates and refinancing costs.
However, the findings suggest some borrowers who refinanced a similar loan amount were able to reduce their repayments.
You might also be interested in: Refinancing is evolving - More Australians are doing more than switching rates
Work out what refinancing could mean for you
While the data provides a useful benchmark, the amount you could save depends on your own loan.
Using a refinancing calculator can help you compare your current repayments with different interest rates and loan terms based on your own circumstances.
Factors that influence how much you could save
Every refinance is different. The amount you could save depends on several factors, including:
Your current interest rate
The gap between your existing rate and the rate available on a new loan is one of the biggest influences on potential savings.
Your remaining loan balance
Larger outstanding balances generally create greater potential for repayment savings, although every situation is different.
Your remaining loan term
Refinancing may shorten or extend your loan term, which can affect both your repayments and the total interest paid over the life of the loan.
Refinancing costs
Exit fees, discharge fees, application fees and other costs should all be considered when comparing potential savings.
What repayment savings were borrowers finding?
Looking beyond median savings, the Aussie analysis also found that many borrowers achieved repayment reductions above $100 per month.
Monthly repayment reduction | Jul 2024-Jun 2025 | Jul 2025-May 2026 |
|---|---|---|
At least $100 | 54.6% | 59.1% |
At least $150 | 45.7% | 50.1% |
At least $200 | 37.7% | 42.0% |
Source: Aussie internal refinance application data
More than half of like-for-like refinancers in the latest period reduced their repayments by at least $100 per month. Half reduced repayments by at least $150 per month, while more than four in ten reduced repayments by at least $200 per month.
These figures won't apply to every borrower, but they provide additional context around the range of repayment outcomes some homeowners achieved after refinancing.
You might also be interested in: More homeowners are accessing equity when refinancing
Steps to reduce your mortgage repayments
If you're considering refinancing, taking a structured approach can help you understand whether it's likely to benefit your situation.
Step 1: Compare interest rates
Compare your current home loan with other available options in the market. Even a relatively small reduction in your interest rate may reduce your repayments over time, depending on your loan balance and remaining loan term.
Step 2: Estimate your potential savings
Use Aussie's Mortgage Repayment Calculator to compare different loan scenarios using your own loan amount, interest rate and remaining loan term.
Step 3: Consider refinancing costs
Refinancing can involve costs such as discharge fees, application fees, settlement fees or government charges, depending on your lender and circumstances.
Before switching, compare any upfront costs with the potential savings over time.
Step 4: Speak with an Aussie Broker
An Aussie Broker can help compare available loan options, explain refinancing costs and help you understand whether refinancing could suit your circumstances.
Step 5: Review your options regularly
Even if you decide not to refinance today, reviewing your home loan from time to time can help you understand whether your current loan continues to meet your needs.
Benefits of refinancing
Reducing your repayments is one reason many homeowners refinance, but the potential benefits can extend beyond monthly savings.
Depending on your circumstances, refinancing may help you:
Reduce your repayments
If you secure a lower interest rate or more suitable loan structure, you may be able to reduce your regular repayments.
Pay less interest over time
Lower interest rates may reduce the total interest paid over the life of your loan, although this depends on your loan term and repayment strategy.
Access different loan features
Depending on the lender, refinancing may provide access to features such as offset accounts, redraw facilities or more flexible repayment options.
Daniel Awkar, Retail Broker at Aussie Prospect, says some homeowners are also looking beyond interest rates when they compare lenders.
"A lot more customers are wanting better technology from their lenders, better apps and more features on their home loans, such as offset accounts," Daniel says.
"Some clients also value the option of walking into a branch if they need something. I've had clients choose a lender with a slightly higher rate purely because there were branches all around."
Access available equity
Depending on your circumstances and lender approval, refinancing may allow you to access available equity for purposes such as renovations or other financial goals.
You might also be interested in: Do you need a deposit to refinance?
What could $151 a month mean?
Aussie's latest refinance analysis found the median monthly saving among like-for-like refinancers increased from $125 to $151 per month.
While every homeowner's situation is different, even relatively modest repayment reductions can add up over time. For some households, an extra $151 each month could contribute towards:
everyday household expenses
building an emergency fund
making additional mortgage repayments
savings goals
utility bills and other regular expenses
Over a year, that's around $1,806.
The amount any individual borrower could save will depend on factors such as their existing loan, available refinance options and refinancing costs.
However, the findings show that some homeowners who refinanced a similar loan amount achieved meaningful repayment reductions.
You might also be interested in: 8 reasons to refinance your home loan
How Aussie can help
Refinancing isn't simply about finding the lowest advertised interest rate. It's about understanding which loan suits your financial circumstances and goals.
Whether you're looking to reduce your repayments, compare loan features or simply understand what's available, an Aussie Broker can help you:
compare home loan options from a wide range of lenders
understand the costs and potential benefits of refinancing
estimate how different loan options could affect your repayments
guide you through the application and settlement process
Even if you decide not to refinance, understanding your options can help you make informed decisions about your home loan.
Refinancing to a lower rate has the potential to reduce your repayments, but the amount you could save depends on your individual circumstances.
If you're ready to explore your options, an Aussie Broker can help you compare available loans, understand potential savings and determine whether refinancing is right for you.