With inflation easing and the Reserve Bank of Australia (RBA) cutting the cash rate three times already in 2025, many homeowners are asking: is now the right time to refinance my home loan?
The short answer: it depends on your goals and situation. But there are some strong reasons why now could be worth reviewing your mortgage.
Inflation and interest rates are moving in the right direction
The latest Australian Bureau of Statistics (ABS) inflation data is promising. The consumer price index (CPI) rose by 2.1% in the year to June, while trimmed mean inflation — the figure the RBA pays closest attention to — is sitting at 2.7%.
That’s the lowest level since late 2021 and right in the RBA’s 2–3% target band. If inflation and growth continue on this path, there’s a strong case for further rate cuts ahead.
The RBA’s latest Statement on Monetary Policy suggests inflation is expected to sit around 2.6% for the next two years. Markets are currently pricing in a cash rate low of around 2.9% by the end of 2026, before edging slightly higher again in 2027.
Lenders are competing harder than ever
With three cuts already this year, lenders are sharpening their offers. Right now, you may find:
- Lower rates than what you’re paying today
- Cashback offers for switching loans
- Flexible features like redraw facilities or offset accounts to help you save on interest
If you’ve been with the same lender for a while, there’s a good chance a more competitive deal is out there.
Signs it could be time to refinance
While every situation is unique, refinancing may be worth considering if:
- You’ve had the same loan for years – older loans may not be as competitive.
- Your situation has changed – a new loan could better suit your current goals.
- You’re juggling multiple debts – consolidating into your home loan can simplify repayments (though it’s important to consider the long-term costs).
- You want to access equity – whether it’s for renovations, investments, or other big goals, refinancing can unlock funds.
Should you act now or wait?
It’s difficult to predict the exact timing of the RBA’s next move. But with rates lower, lenders competing, and the market shifting, now is a great time to at least review your current loan.
Even if you don’t refinance right away, a home loan health check ensures you know where you stand — and whether your current lender is still giving you value.
Let Fox Mortgages help
At Fox Mortgages, we make refinancing simple. We’ll:
- Review your loan and lender against today’s market
- Crunch the numbers on whether refinancing will save you money
- Explain the costs involved so you can make a confident decision
- Match you with a loan that suits your lifestyle and goals
📞 Contact us today to book your appointment for a free home loan health check.
Because the right mortgage should move with you, not hold you back.