Australia’s 2026 Refinancing Landscape: Rates, Savings and Market Trends | Broker360

Australia’s refinancing market has reached record activity levels in 2026, with $65.8 billion in home loans refinanced during the September 2025 quarter alone. With the RBA cash rate at 4.10 per cent following two consecutive hikes, borrowers across every state are reassessing their home loan positions. This comprehensive analysis covers national refinancing trends, lender competitiveness by region, average savings by state, and what borrowers can expect for the remainder of 2026. Whether you are in Perth, Sydney, Melbourne or regional Australia, you will find market-specific insights to inform your refinancing decision.

National refinancing overview 2026

The Australian refinancing market has entered a period of unprecedented activity. According to ABS data, $65.8 billion in home loans were refinanced during the September 2025 quarter, representing a record-breaking figure that surpassed previous peaks during the 2021 to 2022 rate environment.

Key national statistics:

• Refinancing share: Refinancing now represents 38 per cent of all residential lending activity, up from 29 per cent in 2024
• Broker involvement: 77.6 per cent of all refinanced loans were arranged through mortgage brokers, according to MFAA data from the June 2025 quarter
• Average rate reduction: Borrowers who refinanced in early 2026 achieved an average rate reduction of 0.68 per cent
• Average monthly savings: National average savings of $287 per month for refinancers switching from major bank variable rates to competitive alternatives
• Time to settle: Average refinancing settlement time decreased to 24 days in 2026, down from 31 days in 2024

This surge in refinancing activity reflects borrower response to the widened rate dispersion between lenders. The difference between the lowest and highest variable rates for identical borrower profiles reached 1.65 percentage points in January 2026, creating significant opportunity for borrowers on outdated rates.

For foundational information on how refinancing works and whether it makes sense for your situation, read our comprehensive guide: What Is Refinancing? The Complete Australian Guide.

RBA rate context and borrower impact

The Reserve Bank of Australia raised the cash rate to 4.10 per cent in March 2026, marking the second consecutive hike in two months. This decision has direct implications for refinancing decisions across the country.

Current RBA position:

• Cash rate: 4.10 per cent as of March 2026
• Next board meeting: May 2026 (scheduled)
• Market expectations: Money market pricing suggests one additional 25 basis point increase possible before end of 2026
• Inflation trajectory: CPI remains above the 2 to 3 per cent target band, driving continued RBA caution

Impact on variable rate borrowers:

The March 2026 rate increase translated to approximately $115 per month in additional repayments on a $500,000 mortgage. For borrowers who have not reviewed their rate since 2024, cumulative increases now exceed $450 per month on the same loan size.

Impact on fixed rate borrowers:

Borrowers who fixed between 2022 and 2024 are now approaching expiry dates. Many face rate increases of 1.5 to 2.5 percentage points when rolling onto standard variable rates. This creates a refinancing window of 3 to 6 months before fixed terms expire.

Refinancing implication:

The current rate environment creates urgency for two borrower groups: variable rate borrowers paying above 5.8 per cent should review immediately, and fixed rate borrowers with expiry dates in the next 6 months should begin shopping 90 days before expiry.

Lender competitiveness by category

Not all lenders are competing equally in the 2026 refinancing market. Understanding which lender categories are most aggressive helps borrowers target their refinancing efforts effectively.

Key insight: Non-bank lenders now represent 24 per cent of new residential lending according to RBA December 2025 data. This segment is driving the most aggressive refinancing pricing as these lenders seek to gain market share from the major banks.

Rate dispersion opportunity:

The 1.65 percentage point spread between lowest and highest variable rates means a borrower on a 6.15 per cent major bank rate could potentially access 5.25 per cent through a competitive non-bank lender. On a $500,000 loan, this represents $2,250 in annual interest savings.

Average refinancing savings by state

Refinancing savings vary by state due to differences in average loan sizes, property values, and lender competition levels. Here is the breakdown across Australia:

National average: $287 per month / $3,444 per year

Why WA shows higher savings despite lower loan sizes: Western Australian borrowers benefited from stronger property appreciation (8.2 per cent year-on-year through December 2025), creating equity buffers that enabled access to the most competitive LVR tiers. Additionally, WA had higher concentrations of borrowers on outdated variable rates from 2022 to 2023.

Perth market analysis

Perth’s refinancing landscape has distinct characteristics driven by local economic conditions, property market dynamics, and lender appetite for Western Australian borrowers.

Perth specific statistics:

• Median dwelling value: $650,000 as of December 2025 (CoreLogic)
• Year-on-year growth: 8.2 per cent, outpacing most eastern states
• Average refinancing savings: $312 per month for Perth borrowers
• Refinance settlement time: 22 days average, faster than national 24 day average
• Lender competition: 18 lenders actively competing for WA refinances with dedicated WA underwriting teams

Growth corridor lending dynamics:

Suburbs in Perth’s northern and southern growth corridors (Ellenbrook, Butler, Baldivis, Byford) face varying lender policies. Three major lenders impose maximum 80 per cent LVR on properties in designated growth corridors, while seven other lenders offer standard 95 per cent LVR. This creates significant arbitrage opportunities for borrowers in these areas.

Resource sector income considerations:

Perth borrowers with mining, energy, or FIFO income components benefit from lenders offering favourable treatment of variable income. Some lenders assess bonus and allowance income at 80 to 100 per cent value, while others apply conservative 50 per cent assessments. A FIFO worker earning $140,000 base plus $30,000 annual bonus could see borrowing capacity differences of $65,000 depending on lender selection.

Strata reform impact:

WA’s Strata Titles Amendment Act 2024 (effective 1 July 2025) caused some lenders to reassess apartment lending policies. Buildings undergoing cladding remediation or with funding model concerns may face restricted lender panels. However, specialist non-bank lenders maintain flexible policies for Perth apartment complexes, often approving refinances at 75 per cent LVR with rates 0.50 per cent below existing facilities.

For borrowers considering debt consolidation as part of their refinance, see our dedicated guide: Refinancing for Debt Consolidation.

Regional variations and considerations

Beyond capital cities, regional Australia presents unique refinancing considerations that borrowers should understand.

Regional WA:

• Bunbury, Geraldton, and Kalgoorlie borrowers have access to 12 to 14 lenders versus 18 in Perth metro
• Valuation turnaround times average 5 to 7 days longer than metro areas
• Some lenders apply postcode loadings of 0.15 to 0.25 per cent for regional properties
• Regional lenders (Bankwest, Beyond Bank, Community First Credit Union) often offer superior terms for local borrowers

Regional Victoria and NSW:

• Strong agricultural lending competition in farming regions
• Coastal lifestyle areas (Byron Bay, Mornington Peninsula) treated as metro for lending purposes
• Some lenders require physical valuations for regional properties versus desktop for metro

Regional Queensland:

• Mining and resources towns (Mackay, Gladstone, Mount Isa) have specialist lender panels
• Cyclone-rated construction may affect valuation and insurance requirements
• Strong competition from regional banks in Southeast Queensland

Tasmania and Northern Territory:

• Limited lender panels (8 to 10 active lenders versus 18 nationally)
• Valuation challenges in unique property types
• Longer settlement timelines (28 to 35 days average)

Key refinancing trends in 2026

Several distinct trends are shaping the Australian refinancing market in 2026:

Trend 1: Cashback incentives returning

After disappearing during the 2023 to 2024 rate rise period, cashback offers have returned. Second tier and non-bank lenders are offering $2,000 to $4,000 cashback for refinances settling before June 2026. This effectively reduces the break-even point by 4 to 8 months for borrowers considering refinancing.

Trend 2: Fixed rate expiry wave

Approximately 38 per cent of Australian mortgages are approaching fixed rate expiry in the next 12 months. This creates a refinancing wave as borrowers face potential rate increases of 1.5 to 2.5 percentage points when rolling onto standard variable rates. Lenders are pre-approving these borrowers 90 days before expiry to capture the refinance early.

Trend 3: Debt consolidation refinancing surge

Refinancing for debt consolidation increased 47 per cent in early 2026 compared to 2025. Rising cost of living pressures have driven borrowers to consolidate credit card debt (18 to 22 per cent interest) and personal loans (10 to 15 per cent) into home loans at 5 to 6 per cent. For guidance on this strategy, see: Refinancing for Debt Consolidation.

Trend 4: Equity release for investment

Property investors are increasingly using refinancing to access equity for additional property acquisitions. Strong capital growth in Perth (8.2 per cent), Brisbane (6.8 per cent), and Adelaide (7.1 per cent) has created equity buffers that investors are leveraging. For detailed equity release strategies, see: Refinancing for Equity.

Trend 5: Digital refinancing acceleration

Fully digital refinancing (no physical documentation, desktop valuations, electronic settlement) now represents 64 per cent of all refinances, up from 41 per cent in 2024. This has reduced average settlement times from 31 days to 24 days nationally.

What to expect for the rest of 2026

Based on current market conditions, RBA guidance, and lender positioning, here is what Australian borrowers can expect for the remainder of 2026:

Rate outlook:

• One additional 25 basis point RBA increase possible before end of 2026
• Variable rates likely to stabilise in the 5.25 to 6.15 per cent range across lender categories
• Fixed rate pricing expected to remain competitive as lenders seek to lock in borrowers before potential further increases

Refinancing activity:

• Refinancing volume expected to remain elevated through Q2 and Q3 2026
• Potential moderation in Q4 2026 if RBA signals pause in rate cycle
• Broker-refinanced loans to maintain 75 to 80 per cent market share

Lender competition:

• Non-bank lenders expected to continue aggressive pricing to gain market share
• Major banks likely to increase retention activity for existing customers approaching fixed rate expiry
• Cashback incentives may reduce in second half of 2026 if refinancing volume remains strong

Strategic recommendation:

Borrowers considering refinancing should act within the next 3 to 6 months to capture current cashback incentives and competitive pricing. Waiting for potential rate cuts introduces uncertainty, as the RBA has indicated rates will remain restrictive until inflation sustainably returns to the 2 to 3 per cent target band.

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