Key takeaways:
Refinancing activity remains elevated. ABS data shows owner-occupier external refinancing reached $41.9 billion in the June quarter of 2026.
A fixed-rate expiry can trigger a loan review. When a fixed term ends, your repayments may change depending on your new rate arrangement.
A lower interest rate is only part of the decision. Compare fees, loan features, repayment flexibility and long-term costs before refinancing.
Lenders assess your full financial position. Credit history, income, employment, expenses, property value and LVR can all affect refinance options.
Equity access may support your next goal. Subject to lender approval, refinancing may help fund renovations or other eligible expenses.
Refinancing your home loan can feel like a big step, especially if it's your first time. But as lender pricing, loan features and household budgets change, it may be worth checking whether your current loan still suits your needs.
Recent ABS lending data shows refinancing activity remained substantial in the June quarter of 2026. In the June quarter of 2026, owner-occupier external refinancing (switching a loan with a loan from a different lender) was $41.9 billion, while internal refinancing (refinancing with the original lender, including certain loan increases or top-ups) was $24.8 billion.
External refinancing was down from $43.1 billion in the March quarter, while internal refinancing was down from $27.2 billion.
Fixed-rate expiry remains one reason borrowers may review their home loan. The fixed-rate cliff that followed the pandemic-era low fixed rates largely played out during 2023 and 2024, but individual borrowers can still reach the end of a fixed-rate period at different times.
When a fixed-rate period ends, a borrower may move to the lender's applicable variable rate or another rate arrangement. Depending on the new rate, repayments may increase or decrease. The earlier fixed-rate expiries led many borrowers to reassess their loan arrangements, and the end of a fixed-rate period can still be a trigger to review your loan.
Cash rate movements can also influence borrower sentiment, although lender pricing doesn't always move in line with the RBA cash rate. Check the latest movements with Aussie's live RBA cash rate tracker.
If you're refinancing for the first time, where should you start? This guide explains what to check, how the process works and what to consider before switching lenders.
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Is refinancing right for you?
Refinancing isn’t a one-size-fits-all decision. Here’s what typically motivates first-time refinancers:
End of a fixed-rate period: Many of the pandemic-era fixed-rate loans that created the ‘fixed-rate cliff’ have already rolled off. But if your own fixed-rate period is ending, your repayments may change when your loan moves to a new rate.
Cost of living pressures: With groceries, fuel and bills rising, people are reassessing where their money is going, including their mortgage.
Life changes: Maybe you’ve had a baby, changed jobs, finished a renovation, or returned from parental leave. These moments often prompt a financial rethink.
Debt consolidation: Consolidating debts such as personal loans or credit cards into a home loan may simplify repayments, but it can increase the total interest paid if those debts are repaid over a longer term. It also means unsecured debts may become secured against your home.
Equity opportunities: If your property's value has increased or you've reduced your loan balance, you may have more equity. Subject to lender assessment and approval, you may be able to borrow against some of that equity for purposes such as renovations or other eligible expenses.
“A lot of recent homebuyers are pleasantly surprised by how much their property values have increased. Combined with a few years of paying down their mortgage, many are in a much stronger position than they realise, which opens some great opportunities.” - Samantha Harvey, Senior Mobile Broker, Aussie NSW
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What first-time refinancers need to know
It’s easy to assume that refinancing is all about getting a lower interest rate. And while rates matter, they’re only part of the story.
What lenders typically look at:
Your credit history
Your income and job stability
Your property's value, loan balance and resulting LVR/equity position
Your expenses, including dependents and liabilities
Many first-timers are surprised to learn:
You don’t always have to switch banks to refinance. Your current lender might offer you a better deal to stay.
Loan features like offset accounts or redraw can be just as important as a lower rate.
It can be beneficial to have an expert in your corner. Aussie Brokers deal with lenders day to day and could help you narrow down your lender options, base on which ones are likely to offer the flexibility you need, based on your individual circumstances.
The step-by-step refinancing process
Here’s how it works when you refinance your home loan for the first time:
Step 1: Assess your current loan
Understand your interest rate, mortgage repayments, and remaining loan term. Ask: is this still working for me?
Step 2: Gather your documents
You may need documents such as proof of income, identification, current loan statements and information about your expenses and liabilities.
Step 3: Get a borrowing assessment
An Aussie Broker can help assess your position and compare participating lenders and loan options, subject to lender criteria and approval.
Step 4: Compare your options
Look beyond the interest rate. Features like offset accounts, redraw, fixed vs variable options, and fee structures matter.
Step 5: Apply and settle
Once you’ve chosen a loan, your broker will help manage the application, communicate with the lender, and guide you through settlement.
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Avoid these common refinancing mistakes
Refinancing may have benefits, but there are also costs and trade-offs to consider:
Chasing the lowest rate without checking fees or loan features.
Overlooking refinancing costs: These may include break costs, discharge fees, application or switching fees, valuation fees and other applicable costs.
Confusing purpose types: Owner-occupier loans vs investor loans have different criteria. Make sure you’re applying for the right one.
Resetting to a new 30-year term without realising the long-term cost.
Explainer: What is a break fee?
If you’re currently on a fixed-rate loan and want to refinance early, you might be charged a "break fee." This is a cost for ending your contract before its agreed term. Ask your lender or broker about any applicable break costs before deciding whether to refinance.
Choosing the right loan features for your next chapter
Flexibility matters when you refinance. The loan with the lowest advertised rate may not suit your needs. Fixed, variable or split rates, offset accounts and redraw facilities can all affect your repayments, day-to-day loan management and flexibility if your circumstances change.
Before refinancing, compare the rate, fees, features and loan structure. A lower rate may reduce your repayments, but the overall value of a loan depends on how well it suits your budget, goals and lender eligibility criteria.
Fixed vs variable vs split: A fixed rate can provide more certainty about repayments during the fixed period, while variable and split loans have different features, pricing and risks. A broker can help you work through what could better suit your situation now.
Offset vs Redraw: An offset account can reduce the portion of your loan charged interest, while a redraw facility may allow you to access eligible extra repayments, subject to the loan's terms.
Reducing your term: YReducing your loan term may help you repay the loan sooner, but it may also increase your required repayments. Compare the repayment and total-interest implications before changing the term.
“In many cases, the only way to unlock sharper rates is by refinancing. A lot of lenders offer tiered pricing based on LVRs, and homeowners with lower loan-to-value ratios can access much better deals than they think.” - Samantha Harvey, Senior Mobile Broker, Aussie NSW
What if you’re not sure you qualify?
It’s common to feel uncertain. If your circumstances have changed, it could still be worth understanding what refinancing options may be available to you.
Credit score not ideal? A broker can help you understand how your credit position may affect your refinancing options and compare participating lenders' criteria.
Worried about valuation? Use comparable sales and broker guidance to understand your equity.
Income changed? Lenders assess different income and employment circumstances differently, so eligibility may vary between lenders.
Low equity? Refinancing options may be more limited and additional costs such as LMI may apply. A broker can help you understand what options may be available based on your circumstances and lender criteria.
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Ready to refinance?
You don’t have to do it alone. Aussie Brokers have helped thousands of Australians refinance with confidence, and they can help you too.
Talk to an Aussie Broker about refinancing for the first time.
