Refinancing surges as borrowers chase better deals
A record number of Australians are switching lenders – and for good reason.
ABS data shows external refinances in the September quarter climbed 25.2% on last year and hit an all-time high. This isn’t happening because borrowers are restless – it’s happening because the savings are too big to ignore.
Lenders have been adjusting pricing unevenly after recent rate cuts. Some have passed on reductions in full, while others have made smaller movements. That means two borrowers with the same loan size can now be paying vastly different amounts each month.
What’s driving borrowers to switch
Borrowers coming off older fixed rates or legacy variable rates are seeing meaningful savings. Even a reduction of 0.30 to 0.50 percentage points can free up thousands per year.
Three tips before you consider refinancing
- New-to-bank offers are often sharper than existing-customer rates.
- Some lenders are repricing quickly, so some deals don’t last long.
- Make sure your loan matches your financial goals – it’s not always about the lowest rate or fees.
If you’re wondering how much you could save by switching, I can compare lenders for you, while ensuring your new loan is in line with your strategy and goals.