Key takeaways
Pure refinance activity fell from 31.2% to 25.6% of refinance applications in the latest analysis period
More borrowers appear to be making broader changes to their loans when refinancing, rather than simply switching rates.
Like-for-like refinancers still reduced repayments in many cases, with median savings rising to $151 per month.
Reviewing your home loan may help you understand whether it still suits your current needs and goals.
For many Australians, refinancing has traditionally been associated with one goal: finding a lower interest rate and reducing monthly repayments.
While that remains an important reason to review a home loan, new Aussie internal data suggests refinancing behaviour may be evolving.
The analysis found that a smaller share of refinancers are now making "like-for-like" switches, where the loan amount remains broadly the same. Instead, a growing proportion of refinance activity involves larger changes to the loan structure or loan amount.
The findings suggest some borrowers may be using refinancing to support broader financial goals, not just solely to secure a lower rate.
At the same time, repayment savings remain an important part of the refinancing story. Many borrowers who refinanced a similar loan amount were still able to reduce their repayments.
So, what is changing, and what might it mean for homeowners considering a refinance?
Refinancing is becoming more diverse
According to Aussie internal refinance data, the share of pure refinance applications has declined over the past two years.
For this analysis, a pure refinance refers to a refinance where the new loan amount remains within approximately 2% of the borrower's existing loan balance, and there is no associated property purchase.
Because the loan amount remains broadly unchanged, this group provides the clearest indication of whether borrowers are refinancing primarily to improve their loan terms or reduce repayments.
The data shows the share of pure refinances has gradually declined over time.
Period | Pure refinance share | Non-pure refinance share |
|---|---|---|
Jul-Dec 2024 | 32.4% | 67.6% |
Jan-Jun 2025 | 29.7% | 70.3% |
Jul-Dec 2025 | 25.8% | 74.2% |
Jan-May 2026 | 25.1% | 74.9% |
Source: Aussie internal refinance application data
Looking at the broader comparison periods, pure refinances accounted for 31.2% of refinance applications between July 2024 and June 2025. That figure fell to 25.6% between July 2025 and May 2026.
While pure refinances still represent a significant part of the market, the data suggests more borrowers are making larger changes to their loan arrangements when they refinance.
Not all refinancers have the same goal
When people talk about refinancing, they are often talking about very different situations.
Broadly speaking, the Aussie analysis found two types of refinance activity:
Borrower situation | What it might look like |
|---|---|
Like-for-like refinance (pure refinance) | You're replacing your existing home loan with a similar-sized loan, often to reduce repayments, secure a different rate or access features that better suit your needs. |
Refinance with broader changes (non-pure refinance) | You're refinancing while also changing the size or structure of your loan. This may include consolidating debt, accessing equity, reducing your loan balance, or making other adjustments. |
Source: Aussie internal refinance application data
Most homeowners considering a refinance will generally fall into one of these two categories. Some are simply looking to replace an existing loan with a similar-sized loan, while others may be reviewing their home loan as part of a broader financial decision.
While the data does not identify borrower motivations directly, it indicates refinancing activity is becoming more varied.
This may include:
consolidating debt
accessing equity
changing the size or structure of a loan to better suit changing financial circumstances
The Aussie analysis does not identify the specific reason for every refinance application. However, it does indicate that a growing share of borrowers are doing more than simply replacing one home loan with another of a similar size.
This highlights an important point for homeowners considering their options.
Refinancing is not always solely about securing a lower rate. Depending on personal circumstances, it can also be an opportunity to review whether an existing loan structure continues to suit current needs and financial goals.
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Borrowers are still finding repayment savings
While refinancing goals may be changing, many borrowers who refinanced a similar loan amount were still able to reduce their repayments.
Aussie internal data found that almost 78% of like-for-like refinancers reduced their calculated monthly repayments, with median savings increasing to $151 per month in the latest analysis period.
While individual outcomes will vary, the findings suggest some borrowers are still finding opportunities to reduce repayments when reviewing a similar-sized home loan.
Why a home loan review isn't just about rates
When borrowers first take out a home loan, their priorities are often straightforward: purchase a property, manage repayments, and start building equity.
Over time, however, those priorities can change.
Daniel Awkar, Retail Broker at Aussie Prospect, says he's seeing more homeowners review their loan as part of broader financial decisions rather than focusing solely on interest rates.
"I'm seeing more people wanting to refinance to pull out some equity for renovations or consolidate debt to free up cash flow," Daniel says.
"A lot more customers are also looking for better technology from their lenders, including improved apps and loan features like offset accounts."
A borrower who reviewed their loan several years ago may have been focused primarily on securing a lower rate. Today, they may be thinking about different financial goals or life circumstances.
These could include:
changing household expenses
growing families
renovations or improvements
simplifying finances
consolidating existing debts
changes in income
shifting property or investment goals
This does not mean refinancing is always the right option.
However, it highlights why many homeowners choose to review their loan periodically rather than assuming the loan they selected years ago still suits their current circumstances.
Does your home loan still suit your needs?
A simple home loan health check can help borrowers understand whether it's worth reviewing their options.
Question | Why it matters |
|---|---|
Have I reviewed my loan in the last two years? | Loan products, features and lender offerings can change over time. |
Have my financial goals changed? | Your current loan may no longer align with your priorities. |
Have I built significant equity? | Additional equity may create different lending options. |
Am I paying for features I rarely use? | Some borrowers pay for features that no longer suit their needs. |
Have my household circumstances changed? | Family, work, and lifestyle changes can affect loan requirements. |
Answering "yes" to one or more of these questions does not mean refinancing is necessary. However, it may be a useful prompt to review whether your current loan still suits your situation.
Daniel says many borrowers are surprised by how much has changed since they last reviewed their loan.
"A lot of homeowners that haven't touched their loans in years are finding much more flexible lending options and updated systems to help them keep an eye on their loans," he says.
"Customers should always think about what they want from their home loan before focusing on the rate. Some value better apps and customer service, while others are willing to accept a slightly higher rate if they can walk into a local branch when they need support."
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What should borrowers consider before refinancing?
If you're thinking about refinancing, it's important to look beyond the headline interest rate.
Some factors worth considering include:
Loan features
Features such as offset accounts, redraw facilities and repayment flexibility can affect how a loan works day-to-day.
Fees and costs
Refinancing may involve lender fees, discharge costs, or other charges, depending on your circumstances.
Loan flexibility
Different loan structures offer different levels of flexibility, which may be important depending on your future plans.
Overall financial goals
A lower rate may be important, but it is often only one part of a broader financial decision.
Repayment affordability
Understanding how repayments fit within your household budget remains an important part of any lending decision.
An Aussie Broker can help you compare available options and understand how different loans may fit your circumstances.
You might also be interested in: More homeowners are accessing equity when refinancing
A home loan review can reveal more than a different interest rate
Refinancing is evolving alongside homeowners' needs. While many borrowers continue to review their loan to reduce repayments, others are looking at refinancing as part of broader financial decisions.
That doesn't mean refinancing will be the right option for everyone. But it does highlight why reviewing your home loan from time to time can be worthwhile.
Even if you ultimately decide to stay with your current lender, reviewing your options can help you understand whether your loan still supports your circumstances and goals today.
If you're considering your options, an Aussie Broker can help you review your current loan, understand what may be available, and compare loans that suit your circumstances.
