Refinancing after the 2026 rate rises: a checklist

The Reserve Bank raised the cash rate four times in 2026, taking it to 4.60% in September, the highest level since 2011. Lenders have passed those rises on, and many fixed rates set in earlier years are now expiring. If you haven't looked at your loan this year, now is a good time.

1. Know your current numbers

• Your balance, interest rate, repayment and remaining term.
• Whether you're fixed or variable, and when any fixed period ends.
• A rough current value of your property, which gives you your loan-to-value ratio (LVR).

2. Compare against today's market

As at early October 2026, the average owner-occupier variable rate was about 6.63% p.a. (principal and interest, 80% LVR), with the lowest around 5.79%. If your rate is well above the market, your own lender may lower it if you ask. Refinancing is the alternative if they won't.

3. Add up the cost of switching

• Discharge fee from your current lender, plus government mortgage registration fees.
• Break costs if you leave a fixed rate early. These can be large, so get a quote first.
• Application or valuation fees with the new lender, if any.
• Lenders mortgage insurance if your LVR is above 80%.

4. Check you'll be approved

• Lenders assess you at your new rate plus a 3% buffer, APRA's serviceability buffer.
• Since February 2026, banks can write only a limited share of new loans to borrowers owing six times their income or more, so high-debt applications may get extra scrutiny.
• Your credit report: check it for free before you apply.

5. Look past the cashback

A cashback can be worth having, but compare the comparison rate and the total cost over the years you expect to keep the loan. A slightly higher rate can wipe out a cashback within a year or two.