Refinancing Surge 2026: Is Your Australian Home Loan Still Working for You?
If you haven’t reviewed your home loan recently, you might be paying more than you need to. New data from Equifax shows that refinancing home loan demand now makes up 34% of all mortgage demand in Australia — and with the RBA cash rate already rising to 3.85% and further increases forecast, the urgency to act has never been greater.
What the Refinancing Data Is Telling Us
According to the Equifax Consumer Market Pulse report for February 2026, secured credit demand rose 5.5% year-on-year, with mortgage enquiries climbing 8.9% compared to the same period in 2025. Kevin James, Chief Solution Officer at Equifax, noted that recent rate movements have “likely been a trigger for consumers to lock in credit and refinancing arrangements now to get ahead of any future rate increases.”
Notably, large non-bank lenders recorded a 44% jump in external refinancing customers, suggesting many borrowers are looking beyond the big four banks for more competitive home loan arrangements. New mortgage originations also rose 3.6% year-on-year, with Queensland and Western Australia showing the strongest demand growth.
Why the RBA Rate Environment Makes Now Critical
The RBA raised the official cash rate to 3.85% at its February 2026 meeting, responding to re-accelerating inflation and stronger private demand. Since then, all four major Australian banks — Westpac, NAB, CBA, and ANZ — have updated their forecasts and now expect another rate rise in March 2026. CBA and NAB are projecting the cash rate could potentially reach 4.35% by mid-year.
For borrowers on variable rate home loans, this means further increases in monthly repayments are likely coming. For those on fixed rates nearing expiry, the situation is equally pressing — locking in now could mean securing a more competitive rate before lenders move again.
If your home loan interest rate is being discussed, please note: Comparison rate calculated on a loan amount of $150,000 over a term of 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges.
New APRA Rules — What Borrowers Need to Know
Adding complexity to the refinancing landscape, APRA introduced new rules from 1 February 2026 that cap high debt-to-income (DTI) loans — those with a DTI ratio of six or more — at 20% of new residential lending. This policy tightening may affect some borrowers’ ability to refinance or access new lending at higher amounts. It makes expert guidance more important than ever when navigating your options.
Practical Tips for Australian Borrowers Right Now
- Review your current rate today: Compare what you’re paying against what’s currently available. The difference can be significant.
- Consider non-bank lenders: Non-bank lenders are offering competitive home loan choices and have seen a surge in popularity among refinancers.
- Act before the next RBA decision: Lenders often move rates ahead of official RBA announcements — as ANZ’s recent fixed rate hikes demonstrated.
- Speak to a mortgage broker: A qualified broker can compare products across multiple lenders and provide personalised assistance tailored to your financial situation.
Need personalised assistance?
Contact Daniel Nguyen, Mortgage Broker at Finance Hub and Networks.
📞 0430 11 11 88
Credit Representative 573164 is authorised under Australian Credit Licence 573164. Your full financial situation would need to be reviewed prior to acceptance of any offer or product. Subject to lenders credit criteria, fees and charges will apply.
