With the RBA’s latest decision bringing the cash rate to 4.35%, lending conditions are once again front of mind for many homeowners, investors and buyers. The latest move is another reminder that the lending environment can shift quickly, and that borrowers need to stay close to their position rather than assuming their current loan is still the right fit. The RBA confirmed the May increase was made to help bring inflation down.
For many clients, these moments often prompt bigger conversations around their home loan, their repayments and their long-term plans. It is not always about making an immediate change, but it is about knowing where they stand and understanding whether their current structure still supports their goals.
That’s where the right guidance becomes so valuable. In a market where rates, lender appetite and borrower needs are all moving, a well-timed review can give clients the clarity they need to make confident decisions.
This week, we’re looking at why refinancing has become such an important conversation in 2026, and what borrowers should be considering before making their next move.
Why Refinancing is Back in Focus
In 2026, refinancing is not just popular — it is strategic. With the RBA now holding the cash rate at 4.35%, many borrowers are using this as a chance to reassess their overall position. After a period of rate movement, higher repayments and shifting lender policies, more homeowners are asking whether their current loan still reflects their needs.
The data supports this shift. According to the Australian Banking Association, 640,137 mortgages were refinanced throughout 2025, representing a 20% increase from the previous year. That tells us borrowers are not simply waiting on the sidelines — they are actively reviewing, comparing and, where appropriate, making changes.
But this wave of refinancing is not only about finding a lower rate. For some borrowers, the conversation starts with repayment pressure. For others, it may be about creating more flexibility, accessing equity, consolidating debt, or adjusting their loan structure to better suit their stage of life.
This is where advice becomes important. A refinance that looks good on paper still needs to be assessed against the borrower’s full position, including their income, expenses, future plans, property value and lender eligibility. The right outcome is not always the cheapest rate — it is the structure that works best for the client’s goals.
Refinancing is clearly becoming one of the key lending conversations of 2026 — but the real value lies in how that conversation is handled.
For some clients, refinancing may help reduce pressure. For others, it may open the door to future plans, better flexibility or a more suitable loan structure. And for some, a review may simply confirm that they are already in a strong position.
Either way, the important thing is that clients are not left guessing. If you have a client who may benefit from reviewing their current home loan, our team is here to help them understand their options and make informed decisions with confidence.
Interest Rates
VARIABLE
These rates are variable and based on a $500,000 loan with principal and interest payments over 30 years (as of May 2026):
1 YEAR FIXED
The rates below are 1-year fixed rates based on a $500,000 loan, with principal and interest payments over a 30-year loan term (May 2026):
