If you haven’t reviewed your home loan in a few years, you could be paying what some call a “loyalty tax.” New Canstar research shows just how much staying put might be costing Australian borrowers in 2026 — and why a pause in the cash rate is a sensible time to consider home loan refinancing.
What the research found
A Canstar survey of 2,891 home loan borrowers found 52% have never switched lenders, and only 6% changed providers in the past 12 months. The catch is that loyalty often comes at a price. An owner-occupier who took out a loan around five years ago and hasn’t renegotiated is likely paying a variable rate near 6.98%. Yet Canstar’s tracking shows 40 lenders currently offer at least one variable rate under 6%, with the lowest sitting at 5.69%. Many lenders reserve their sharpest pricing for new customers, so existing borrowers can drift onto uncompetitive rates without realising it.
What home loan refinancing could mean for you
Canstar estimates a borrower with $600,000 owing and 25 years remaining could be around $10,713 better off over two years by moving from roughly 6.98% to a rate under 6% — even after allowing for about $1,150 in switching costs. With the RBA widely expected to keep the cash rate on hold this week, it’s a practical window to check your position. Whether refinancing makes sense depends on your current rate, loan balance, fees, features and goals — there’s no one-size-fits-all answer, which is exactly where tailored advice helps. Owner-occupiers, investors and recent first home buyers can all benefit from a review, though the right move varies for each.
Talk to a Finance Hub broker
A quick home loan health check could reveal a meaningful saving — or simply confirm you’re already well placed. Either way, you’ll know where you stand. Talk to a Finance Hub broker — call 0430 11 11 88 or visit finhub.net.au.
Source: Canstar
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