Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsMaybe—but an RBA rate rise alone is not a reason to refinance. After the Reserve Bank of Australia’s 25-basis-point increase effective 30 September 2026, the cash-rate target is 4.60%. Whether switching saves you money depends on the rate your current lender will offer, the full cost of moving, your eligibility and equity, and how long you expect to keep the loan. Ask your lender for its best rate first, then compare it with a genuine alternative over the same remaining loan term.
What the latest RBA hike means for your mortgage
The RBA’s cash-rate table records an increase to 4.60% effective 30 September 2026. Earlier 2026 increases took the target to 3.85% on 4 February, 4.10% on 18 March and 4.35% on 6 May; the table records no change on 17 June or 12 August. This is the latest decision shown in the table as of 4 October 2026. RBA cash rate target
The cash rate is the interest rate on unsecured overnight loans between banks. Changes can influence other rates, including lending rates, but a mortgage rate is not mechanically equal to the cash rate. Lenders decide whether and by how much to change variable rates, and the rate offered to an individual may also reflect creditworthiness, customer value and competition. RBA: The transmission of monetary policy Moneysmart: Switching home loans Moneysmart: Home loan interest rates and fees
For context, the RBA’s July 2026 data reports average rates on new loans of 6.24% per annum for owner-occupiers and 6.41% for investors, including fixed and variable loans. These are broad averages, not advertised best rates or personal offers, and do not show what you qualify for. The RBA says lender interest-rate data is published five business days after month end, so a newer release may be available. RBA lending rates
#1 Best Overall
Should you switch banks or negotiate with your current lender?
Start by asking your existing lender for its best available rate. Tell it you are comparing alternatives and ask what it can offer on your current loan. Lenders may reduce a rate to retain a customer, but a discount is not guaranteed. Moneysmart notes that at least 20% equity and a good credit score may strengthen your negotiating position. Moneysmart: Switching home loans
If your lender’s offer is still uncompetitive, compare at least two lenders using Key Fact Sheets based on your likely loan amount. Keep the repayment type, frequency, rate type and remaining term consistent. Compare the personalised comparison rate, total amount repayable, repayment amount, establishment charges and ongoing fees—not just the headline interest rate. Moneysmart: Compare home loans
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
How to compare refinance offers fairly
Use the same remaining term
A fresh 30-year loan may show a lower monthly repayment than a loan with fewer years left, simply because repayment is spread over a longer period. That does not necessarily mean it costs less: a longer term can increase total interest and keep you in debt for longer. Ask for an offer with a similar remaining term if you want a like-for-like cost comparison.
Count the costs of moving
Request a written payout figure from your current lender and a full fee schedule from the prospective lender. Check for a fixed-rate break fee, discharge or termination charge, new application fee, any internal switching fee, stamp duty where applicable, and possible lenders mortgage insurance (LMI) on the new loan. Ask whether any LMI on your existing loan could be refunded. Charges and refund eligibility depend on your circumstances and lender, so do not assume a generic fee applies. Moneysmart: Switching home loans
Check equity and approval requirements
If you have less than 20% equity, you may have to pay LMI on a new loan; that cost could outweigh the interest savings. A refinance is also a new lender decision, so an advertised rate does not establish that you will qualify for it. Ask the lender to assess your situation and include any applicable LMI in the comparison.
Keep the features you actually use
Check whether each loan provides the offset account, redraw access and extra repayments you need, and whether using those features carries fees or restrictions. Also find out what rate and conditions apply when an introductory or fixed period ends. A lower rate may be a poor fit if the loan removes a feature you rely on. Moneysmart: Compare home loans
Rank #4
Work out the payback period
Estimate savings over the period you realistically expect to keep the loan, then compare them with the one-off and ongoing costs of switching. The break-even point is when accumulated savings offset those costs; if you expect to sell or refinance again before then, switching may not pay off. Moneysmart’s switching calculator can help estimate savings and cost-recovery time. Moneysmart: Switching home loans
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Does your loan type change the answer?
Variable rate
A variable rate can rise or fall, and the lender chooses whether and how much to change it. Variable loans commonly offer flexibility such as extra repayments, offset or redraw, but repayments can change unexpectedly. Compare the rate and the features you use, not the rate alone. Moneysmart: Home loan interest rates and fees
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
Fixed rate
A fixed rate keeps repayments steady during the fixed period and protects you from rate increases during that time. It may restrict extra repayments or other features, and exiting early can trigger a potentially large break fee. Get an actual payout figure before considering a switch. If the fixed period is nearly over, compare the lender’s revert rate and alternatives available when it expires rather than assuming an immediate exit is best. Moneysmart: Home loan interest rates and fees Moneysmart: Switching home loans
Split loan
A split loan has fixed and variable portions. It can combine some repayment certainty with flexibility, but the two portions may have different rates, fees, features and conditions. Compare the total cost and terms of the whole arrangement rather than focusing on its lower-rate portion. Moneysmart: Home loan interest rates and fees
What to watch when using comparison sites
Comparison sites may earn money from promoted links and may not cover every option. Treat a ranking as a starting point, not a complete market comparison: check the lender’s own materials and compare more than one source. Moneysmart: Switching home loans
If you are already struggling to make repayments, contact your lender about hardship support and seek qualified assistance. Refinancing requires a new lender’s approval and is not a guaranteed solution.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
