On 16 June 2026, the Reserve Bank of Australia left the official cash rate unchanged at 4.35%. After three consecutive rises in February, March and May, this is the first hold of the year — and for many households carrying a home loan, it is a welcome breather. But a pause from the RBA does not have to mean a pause for you.
What happened
The RBA board held the cash rate at 4.35% as it weighs how earlier rises are flowing through to the economy. Among the big four banks, CBA, NAB and ANZ now expect the next move to be a cut some time in 2027, while Westpac is the outlier, forecasting two more rises later in 2026. In short: the direction of rates from here is still genuinely uncertain.
One figure stood out this week. A Canstar survey of 2,891 homeowners found that more than half (52%) have never switched home loan providers, and another 31% have not switched in the past two years. Canstar’s Sally Tindall described long-term borrowers who have never negotiated as likely to be “overpaying” — a quiet loyalty tax.
What this means for you
A hold is a good moment to check whether your current loan is still working for you. Canstar’s own example shows the gap: an owner-occupier who took out a loan five years ago and never refinanced is likely sitting on a variable rate around 6.98%, while the lowest variable rates on its database start near 5.69%.
On a $600,000 balance with 25 years remaining, moving from roughly 6.98% to under 6% could save in the order of $10,700 over two years, even after about $1,150 in switching costs — based on Canstar’s hypothetical. Your own numbers will differ depending on your balance, rate, loan term and lender, which is exactly why a personalised review matters.
If you have savings sitting idle, the same “higher for longer” setting works in your favour too — savings account rates are currently sitting near 14-year highs.
Talk to a Finance Hub broker — call 0430 11 11 88 or visit finhub.net.au to review whether your home loan still suits your situation.
Source: Canstar News, 16 June 2026.
Finance Hub and Networks Pty Ltd | ACL 573164 | ACN 644 141 613. This information is general only and does not take into account your objectives, financial situation or needs.
