Should I Refinance My
Mortgage in 2026?

Why Australians are refinancing right now

If you are asking whether you should refinance your mortgage in 2026, you are not alone. With interest rates shifting and a large number of fixed-rate loans expiring, thousands of Australians are reviewing their home loans right now.

Many borrowers are paying more than they need to, often without realising it. If your fixed rate has ended and you have not reviewed your loan, there is a good chance you have rolled onto a higher variable rate. Even borrowers on variable rates may find that competitive rates have moved significantly since they last checked.

Common reasons people are refinancing right now include:

• Their fixed rate has ended and they have rolled onto a higher variable rate
• Interest rates have changed since they took out their loan
• They have not reviewed their mortgage in two or more years
• Their financial situation has changed — higher income, new expenses, or different goals

If any of these apply to you, it is worth checking whether your current loan is still the right fit. Our comprehensive guide to refinancing your mortgage in Australia covers the full process.

How much could you save?

The potential savings from refinancing depend on your loan balance, the rate difference, and the costs involved. Even a small rate reduction can make a meaningful difference over time.

For a deeper breakdown, including how to calculate your own potential savings, read our guide on how much you could save by refinancing.

When refinancing might not be worth it

Refinancing is not always the right move. There are situations where the costs outweigh the benefits:

• High break costs — if you are on a fixed rate and the break cost is substantial, it may eat into your savings
• Planning to sell soon — if you expect to sell your property within the next year or two, the upfront costs of refinancing may not be recovered
• Minimal rate difference — if the rate improvement is very small, the savings may not justify the effort and fees

The key is to calculate your break-even point — the time it takes for your monthly savings to cover the upfront costs. If the break-even is longer than you plan to hold the loan, refinancing may not make sense. Read about the full costs of refinancing before deciding.

The smarter way to think about refinancing

Many borrowers focus entirely on getting a lower interest rate. While rate is important, it is not the only factor. The smarter question is not just "can I get a better rate?" but "will this improve my overall financial position?"

Consider loan structure, flexibility, offset and redraw features, and how the loan fits with your longer-term goals. A slightly higher rate with better features may serve you better than the absolute cheapest option.

Frequently asked questions