The Reserve Bank of Australia has kept rates steady at its latest meeting, but market expectations suggest potential cuts later in 2026. For homeowners currently locked into rates above 6%, now could be an excellent time to explore refinancing options.
Why Consider Refinancing Now?
Competition among lenders is fierce, with many offering cashback deals and reduced rates to attract new customers. Even a small reduction of 0.5% on a $500,000 loan could save you approximately $2,500 per year.
What to Watch For
Before making the switch, consider any break costs if you're on a fixed rate, and factor in application fees and discharge costs. A good mortgage broker will help you calculate whether the net savings make refinancing worthwhile.