Invest
The simple trick that could save you $2,000 on your home loan
Australians who refinance their mortgages and secure a saving of up to 1 per cent on their current rate could see their finances improve by $2,000 a year, yet hesitancy towards switching rates remains, new research has revealed.
The simple trick that could save you $2,000 on your home loan
Australians who refinance their mortgages and secure a saving of up to 1 per cent on their current rate could see their finances improve by $2,000 a year, yet hesitancy towards switching rates remains, new research has revealed.
Stats released by Aussie Home Loans showed that out of the approximate 6 million outstanding mortgages in Australia, less than 450,000 of those were refinanced in the last financial year.
This is despite the pressures put on household budgets due to COVID-19 restrictions, and the Reserve Bank of Australia dropping rates three times in just over a year.
According to Aussie, the research shows there’s a disconnect between mortgage-holders’ understanding of the opportunities to refinance, and their willingness to take action and gain favourable lending conditions while rates are low.
While most respondents (62 per cent) said they understand the importance of refinancing a home loan on a regular basis, only one in five (20 per cent) mortgage-holders in Australia have acted and refinanced their mortgage in the last 12 months.
Data released by the Lendi group has shown that those that do opt to refinance could save around $2,000.
CEO of Lendi Group, David Hyman, said the gap between mortgage-holders and those who refinance are staggering.
“Given the trend in interest rates over recent years, it’s shocking that over half of Australians haven’t ever refinanced their current home loan,” he said.
“While this can partly be explained by a knowledge gap when it comes to refinancing and what’s involved, bridging this gap with the help of an expert is not hard. It’s good to remember that reviewing your loan doesn’t always mean refinancing, and you may not even need to change lenders to get a better rate.”
Some of the reasons why Australians are not refinancing include believing it’s too hard or being unsure where to begin the process (22 per cent), not believing they can get a better deal (18 per cent), or due concern that they will end up worse off or having to pay more money (24 per cent).
“It’s important that Australians understand that reviewing a home loan does not have to mean that you will end up worse off. If you don’t understand the process, you can speak to a mortgage broker with no obligations, and they can help you understand your financial situation and what opportunities are available through refinancing,” Mr Hyman concludes.
RELATED ARTICLES
About the author
About the author
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Property advice goes rogue as risks and opportunities knock on every door
A warning from the Property Investors Council of Australia has put a spotlight on the surge of unlicensed financial advice around property strategies. This is no niche compliance issue—it’s a ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Property advice goes rogue as risks and opportunities knock on every door
A warning from the Property Investors Council of Australia has put a spotlight on the surge of unlicensed financial advice around property strategies. This is no niche compliance issue—it’s a ...Read more
