Refinance rescue: Almost half a million mortgage holders plan to switch lenders
Key takeaways
- 14% of borrowers are planning to refinance in the next year.
- Shaving just 50 basis points off a $500,000 home loan could save you $58,000 over 30 years.
- Now is a good time to find out whether your current lender is still giving you a competitive deal.
Hundreds of thousands of borrowers are rushing to refinance as the cash rate hits its highest level in 15 years, according to new research by Finder.
Finder's research found 14% of mortgage holders – equivalent to 462,000 people – plan to refinance their home loan with a different lender in the next 12 months.
Finch confirmed that refinancings, while lower year on year, account for somewhere between 60-65% of mortgage sales, compared with about 35% historically.
The figure comes as the Reserve Bank raised the cash rate to 4.60% in September, delivering its fourth rate hike of 2026.
A further 9% of borrowers have already refinanced with a different lender in the past 12 months – that's almost a quarter (23%) of mortgage holders who have either recently switched or are planning to.
Richard Whitten, money and home loans expert at Finder, said borrowers are scrambling to find relief from rising repayments.
"The latest cash rate hike has put even more pressure on household budgets, so it's no surprise mortgage holders are looking for ways to ease the strain.
"Borrowers are increasingly willing to shop around when their current loan no longer stacks up.
"Your home loan is one of the biggest expenses, so even a small improvement in your rate or fees can make a meaningful difference over time."
More than 1 in 3 (34%) mortgage holders said they struggled to pay their home loan in September, according to data from Finder's Consumer Sentiment Tracker (CST).
Finder's figures show that on a $500,000 home loan over 30 years, a difference of just 0.50% in your interest rate adds up to more than $58,000 over the life of the loan.
Whitten said lenders are changing their rates regularly.
"If your repayments are starting to bite, now is a good time to find out whether your current lender is still giving you a competitive deal."
One in ten (10%) borrowers say they are unsure whether they'll refinance, while 20% have thought about it but haven't taken the plunge.
Almost half (48%) of Aussie mortgage holders have no plans to refinance.
Are you planning to refinance your home loan with a different lender in the next 12 months
| Yes | 14% |
| No, but I refinanced in the last 12 months | 9% |
| Not sure | 10% |
| No, I've thought about it but haven't | 20% |
| No | 48% |
| Source: Finder survey of 302 Australians with a mortgage, August 2026 |  |
Credits
- PR & Insights research team: Taylor Blackburn, Kate Boddington, Natascha Kwiet-Evans, William Capada
- Survey operation: Qualtrics
Sources
Ask a question