For over a million Australian homeowners, there’s an opportunity hiding in plain sight, and it could be worth billions.
Aussie’s latest analysis reveals that more than 1.2 million households across the country might be eligible to refinance their home loan right now. And if even half of them acted, we’d be talking about over $1.2 billion in collective savings.
But most aren’t doing anything. Why? Because many homeowners don’t realise how much their financial position has changed since they first bought.
With property prices rising, thousands have moved into lower-risk lending brackets, but unless you check your updated Loan-to-Value Ratio (LVR), you may not know you might be eligible for a better deal.
Rising property prices have quietly shifted the game
For the past few years, interest rates have dominated the headlines. But quietly, behind the scenes, property prices have been doing some heavy lifting, especially for borrowers who bought between 2022 and 2024.
If that’s you, here’s the good news: You may now own a significantly bigger slice of your property than you think. And that could mean you're now in a stronger position to refinance.
So, what’s changed?
The key factor is Loan-to-Value Ratio (LVR), the percentage of your property’s value that’s covered by your loan. When you first buy with a 10% or 20% deposit, your LVR might start at 90% or 80%.
But if your property’s value has increased since then, and you’ve been making repayments, your LVR may have dropped to a new, lower bracket. That’s where refinancing opportunities start to open up.
Lower LVR = lower risk = better rates.
You might also be interested in: 8 reasons to refinance your home
The $520 billion question: Are you sitting on a missed refinance?
Aussie’s own data shows there are roughly 1.2 million home loans nationally that are eligible for refinancing, and many of them are in a much stronger position than when they started.
Here’s the scale of what we’re seeing:
$26 billion in eligible Aussie customer loan balances
When extrapolated to the national level, that’s $520 billion in total balances across 1.2 million loans
Even a conservative saving of $1,000 per refinance would amount to $1.2 billion in untapped savings
And that’s just the base case. Some borrowers could save tens of thousands over the life of their loan by switching to a sharper rate.
But it’s not just about the rate
Refinancing can also unlock:
Better features (like offset accounts or redraw)
Shorter loan terms (which means paying less interest overall)
The ability to consolidate debt
A chance to access built-up equity for renovations, investments, or life goals
All of this starts with knowing where you stand and for many, that means understanding your updated LVR.
The new LVR ladder: Where do you sit?
LVR brackets matter. They determine how lenders assess your risk and what rate you’re offered.
Here’s a simple example:
LVR bracket | What it usually means |
|---|---|
Over 80% | Higher risk: may attract LMI and higher interest |
70–80% | Mid-risk: eligible for sharper rates |
Under 70% | Lower risk: access to most competitive rates |
That means they could now:
Qualify for lower interest rates
Avoid or reduce Lenders Mortgage Insurance (LMI)
Increase their borrowing power for future property goals
In short, many of these borrowers are in the refinance “sweet spot” but haven’t yet reviewed their options.
State-by-state: Where are the biggest refinance opportunities?
Refinance readiness isn’t uniform across the country. In fact, there are some big differences by state.
State | % Eligible to refinance | % Now under 80% LVR | % Now under 70% LVR |
|---|---|---|---|
WA | 98.6% | 20.2% | 42.2% |
QLD | 90.4% | 20.8% | 36.7% |
NSW | 60.9% | 17.0% | 34.4% |
VIC | 40.7% | 19.3% | 35.0% |
*Data sourced internally, June 2025
Homeowners in WA and QLD are in especially strong positions, with more than 90% are likely eligible to refinance.
Even in states with lower overall eligibility, thousands have still shifted to lower LVR brackets, creating untapped refinance potential.
You might also be interested in: Can refinancing your home loan help you save?
Common refinancing myths (and why they’re costing you)
Despite the potential upside, many Australians are holding off on refinancing. Here are some of the most common reasons and why they may be based on outdated assumptions:
“I locked in my rate a couple of years ago. it’s still fine, right?”
Your original rate may have been competitive then, but your property value has likely shifted. Even if rates haven’t dropped significantly, your improved LVR could get you a sharper deal today.
“Isn’t refinancing a hassle?”
Not anymore. With digital tools and expert brokers by your side, most of the process can happen online, and with Aussie, you’ll have someone guiding you the whole way.
“Rates are still high, what’s the point?”
Even when interest rates are steady, refinancing can unlock savings if your LVR has improved. It’s not just about lower rates, it’s about a better deal tailored to your current position.
“Won’t checking hurt my credit score?”
Not at all. Using tools like Aussie’s calculators or speaking to a broker doesn’t impact your score. Only formal applications result in credit checks, and an Aussie broker can help you avoid unnecessary hits.
How to check if you’re eligible to refinance
You don’t need to be a finance expert to get started. Just follow these simple steps:
1. Use our free refinance calculator
Plug in your current loan amount, rate, and estimated home value. It’ll give you a rough estimate of what you could save.
2. Check your updated LVR
Our LVR calculator can help you figure out your current LVR and whether you've moved into a new bracket.
3. Get a free property report
A personalised report can show you how much your home is likely worth today, including recent sales nearby.
4. Speak to an Aussie Broker
This is where the real value kicks in. An Aussie broker will review your current loan, compare options across 25+ lenders*, and help you understand if refinancing is right for you.
What’s the risk of doing nothing?
The biggest cost is invisible: doing nothing while your equity sits idle and your interest rate stays high.
By not refinancing, you could be:
Paying thousands more in interest over the life of your loan
Missing a chance to reduce your LMI or loan term
Delaying plans like renovations or buying an investment property
Leaving your home equity untouched when it could help you grow your financial future
The good news? It’s easy to take action and we’re here to help.
Why refinance with Aussie?
We’re not just about comparison tables, we’re about people. When you refinance with Aussie, you get:
A real person in your corner
Access to over 25 lenders** and 4,000+ loan options
Tools to estimate your savings, equity, and new borrowing power
Guidance on every step of the refinance journey
Whether you’re refinancing to save, renovate, consolidate, or invest, we’ll help you make a move that suits your goals.
Ready to see if you’re one of the 1.2 million?
Your home’s value has likely gone up, so why shouldn’t your loan terms go down?
Check your eligibility
See what you could save
Book your free home loan review^
Refinance isn’t about timing the market, it’s about knowing your value
Refinancing doesn’t have to be complicated, and it’s not just about chasing the lowest rate. It’s about understanding where you stand and making your loan work harder for you.
Aussie’s brokers are here to help, not to sell, but to guide. And when over one million homeowners are missing out, a free^ 15-minute call could be one of the most valuable steps you take this year.
