Why Half of Aussie Households Are Eyeing a Refinance This Year

The Reserve Bank of Australia may have held steady in April, but many homeowners aren't sitting around waiting for the next move. Instead, they're taking charge by refinancing to lower their interest costs.

When rates drop, people start paying attention.

February’s 0.25% rate cut, for instance, gave consumer confidence a solid lift, reaching its highest point in three years.

But with no change to the cash rate this April and no scheduled decision until 20 May, a growing number of borrowers are acting on their own terms. Rather than waiting for a signal, they’re switching to new lenders or renegotiating their current deals to score a better rate.

A recent Canstar survey shows 55 percent of variable-rate borrowers are thinking about refinancing. Even more telling, 14 percent have already done so in the last 12 months.

The Appeal of a Rate That Starts with a '5'

When was the last time you reviewed your mortgage?

You may be paying more than you should. According to Finder, both variable and fixed mortgage rates are now at their lowest since early 2023, and sub-6 percent deals are widespread.

More than 30 lenders are currently offering at least one variable rate below 5.75 percent, according to Canstar.

Still, the average owner-occupier variable rate sits at about 6.44 percent, based on Mozo data.

That suggests a lot of households could be spending hundreds more each month than necessary.

Fixed Rates Are Trending Down Too

It’s not only variable rates that are showing improvement.

Mozo reports that 39 lenders reduced some or all of their fixed rate products in March.

And locking in doesn’t have to mean a long commitment. Several one-year fixed rate loans are especially competitive right now.

So how much can a refinance actually save you?

Over $12,000 in Potential Savings Over Two Years

Canstar’s latest analysis breaks it down. A homeowner on a 6.86 percent variable rate who switches to a 5.74 percent rate on a $600,000 mortgage could save more than $12,000 in interest over two years.

Even if your current rate is a more modest 6.06 percent, refinancing to 5.74 percent still translates to nearly $3,000 saved over two years.

Of course, your actual savings will depend on your specific loan size and interest rate. But this is a solid reminder of why it’s worth exploring your options.

Why Wait for the RBA to Make a Move?

Everyone could use a smaller mortgage repayment. But waiting around for an official rate cut could mean missing out on savings that are already available.

Refinancing is not just about locking in a lower rate. It can also open up new features or give you access to home equity that you can use toward goals like renovating, investing in property, or consolidating debt.

If it's been a while since you last refinanced, this could be the perfect time to reassess your loan.

Osinski Finance Can Help You Explore Better Home Loan Options

At Osinski Finance, we’re seeing what many homeowners already know: you don’t need to wait for the Reserve Bank to act before taking control of your mortgage.

With interest rates softening and lenders offering variable deals starting below 5.75%, refinancing has become a smart move for those wanting to lower repayments, unlock equity, or access more suitable loan features. More than half of variable-rate borrowers are exploring their options, and many have already made the switch.

If it’s been a while since you reviewed your home loan, now could be the right time. Refinancing could help you save thousands in interest and set you up with a loan that better fits your current needs.

Reach out to us and we’ll help you map out your next move with clear direction and assurance.

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