Is Now the Time to Refinance Your Home Loan? - NOV 2025

As inflation points in the right direction and the Reserve Bank of Australia (RBA) has trimmed the cash rate three times so far in 2025, homeowners everywhere are wondering the same thing:

Should I refinance my home loan now?

The quick answer? It is up to your unique circumstance and objectives, but there are some good reasons to make refinancing a priority this year.

Inflation and Interest Rates Are Shifting In Your Direction

Recent inflation numbers have been positive:

Consumer Price Index (CPI) increased only 2.1% in the last 12 months.

The trimmed mean inflation the RBA's preferred gauge was 2.7%, well within the RBA target of 2–3%.

This is the lowest trimmed mean inflation since late 2021. If inflation continues on this trajectory, the RBA can lower interest rates further to continue to drive the economy.

Now, financial markets are pricing in a cash rate low of close to 2.9% as of December 2026, before climbing steadily back to the vicinity of 3.1% in 2027. In brief, we might be seeing some steadier and more competitive conditions of borrowing.

Lenders Are Becoming More Competitive

Whenever the RBA cuts interest rates, lenders become more aggressive in wooing your business. As a result we've been seeing:

• Cashback offers to entice borrowers

• Faster, more flexible, cheaper home loans with redraw facilities and offset accounts

This would not only save you on your repayments but put you in a position where managing your money is easier.

Do You Refinance Now or Wait?

Refinancing is not just about looking for a lower rate it's about making sure your home loan still works for you and your goals. These are some situations where refinancing would make sense:

1. You've Had the Same Lender for Decades

If your original loan was set at a time when rates were higher, you could be paying too much. Refinancing may unlock a better deal.

2. Your Circumstances Have Changed

Changed jobs? Started a family? Increased your income? Your current loan might not reflect your situation anymore refinancing can help align your mortgage with your goals.

3. You’re Managing Multiple Debts

If credit cards, car loans, or personal loans are piling up, refinancing can allow you to consolidate that debt into your home loan. That is, one payment and perhaps a lower general interest rate. (But remember you could pay more interest over the course of the loan, so it's well worth our doing some maths first.)

4. You Want to Access Equity

In the process of considering a refinance, investment property, or big-ticket purchase? Refinancing can allow you to borrow against the equity of your home to fund these goals.

Is Refinancing for You?

Even if you aren't sure whether you should refinance yet, it's a good time to review your loan and make sure it remains competitive.

As your mortgage broker, I can:

• Compare lenders and negotiate deals tailored to your situation

• Lead you to know costs and benefits

• Make refinancing easy and seamless
  

Home Loan Health Check Ready?

If you're curious whether refinancing could save you money or simply want reassurance your loan is competitive let's get talking.

Book your complimentary home loan health check today

Or call me today to begin.