Two-thirds of borrowers could save by refinancing: report

July 10, 2025

No RBA rate cut? No worries

Home owners hoping for rate relief in July may be disappointed, but it’s still possible to score a rate cut of your own by refinancing. Despite this, plenty of borrowers are sticking to an old loan – and it could be costing them.



When it comes to rate cuts, nothing is certain until the Reserve Bank of Australia (RBA) wraps up its board meetings.


We saw this in July, when a long line of pundits predicted a rate cut was almost a sure thing, only to see the RBA keep rates on hold due to concerns about an uncertain economic outlook.


The good news is this hasn’t stopped tens of thousands of home owners negotiate a personal rate cut by refinancing.


Refinancing ramps up in 2025


Recent figures from property settlement firm PEXA, show refinance volumes have rebounded, rising 12.5% over the year to March 2025 as borrowers chase lower rates.


That’s seen thousands of home owners land a rate cut of their own, with the Australian Bureau of Statistics reporting over 65,000 home loans were refinanced in the first three months of 2025 alone.


But it seems many are still missing out.


A survey by Compare the Market shows 65% people who’ve had the same home loan for 3-plus years haven’t refinanced.


And in today’s home loan market, a loan that was competitive back in the day may no longer be such a great match for your needs.


Why think about switching?


As we saw this month, there are no guarantees the RBA will bring future rate relief.


That’s why it can be important to take a front-foot approach by getting in touch with us to compare your home loan options.


This especially applies if you’ve had the same loan for several years, because there’s been plenty of action in the mortgage market lately.


Mozo reports that some lenders have introduced rate cuts on their own, others have held back on official rate cuts, and a growing number are offering fixed-rate options starting with a ‘4’ (now there’s something we haven’t seen for a while!).


Is refinancing right for you?


Loyalty is a great quality – just perhaps not when it comes to home loans.


Sticking with an old home loan can mean paying a higher interest rate than necessary, or missing out on improved loan features.


If you and your loan have been together a while, call us to see if your home loan is still suitable for your needs – and if not, we can help you find one that is.


Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Small deposit? 50,000 Home Guarantee Scheme spots just opened up

By Money Smith Group Client • July 3, 2025
Growing a 20% deposit isn’t just challenging. It can be a (very) long slog. Fortunately, 50,000 new places in the popular 5% deposit Home Guarantee Scheme just opened up on July 1. Here’s how to secure your spot.

What Comes First: the Property or the Loan?

September 17, 2021
It’s easy to get carried away with the fun part of buying a property – looking at houses – but delaying the less compelling task of arranging finance will weaken your negotiating position on both the property and the loan. Looking for a property to purchase is an exciting time. Choices regarding location, size, number of rooms and local amenities often see house hunters carried away in a deluge of daydreams and anticipation. But, before you get carried away, it’s important to check off the essentials first. Although organising your finances may seem drab in comparison to perusing sales listings, gaining pre-approval with a lender will give you confidence about how much you can afford to borrow. “First and foremost, you need to determine if you’re eligible to borrow money from a lender,” says ME Bank Head of Home Loans Patrick Nolan. “Your ability to repay the loan will need to be assessed. You don’t want to find out after you’ve [made an offer] that your credit history or deposit is not up to scratch.” Arranging finance before finding the perfect property will put you in a good position when it comes time to make an offer. When you do find the house you have always wanted, you can present yourself to the seller and estate agent as a prepared applicant who is serious and reliable.  “It shows you mean business and gives them peace of mind that your financing will not fall through. Don’t be afraid to let the selling agent know you have conditional loan approval in place,” Nolan advises.

Jargon Buster

September 17, 2021
This is by no means a complete list of terms and acronyms used, but it will give you a good start. Application fee – Also called an establishment fee, it’s paid to set up your loan and usually includes legal fees and valuation charges. Appreciation - An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation. Arrears – To be behind in a repayment. Body Corporate – An administrative body made up of all the owners within a group of units or apartments of a strata building. The owners elect a committee which handles administration and upkeep of the areas shared by the owners. Break Costs – Also known as economic costs or exit fees. They are charged by an institution to recoup interest lost through a borrower refinancing with another institution or paying their loan out early. Break costs are normally only charged on fixed-rate loans where the amount of interest the institution would receive is easily calculable. It can also be charged well into the variable portion of a honeymoon or introductory rate home loan. Some institutions also charge a flat fee on top of their break cost charge. They may refer to this fee as a “deferred establishment fee”.