A record number of Australians are switching lenders – and the trend shows no signs of slowing down.
According to the latest ABS data, external refinances in the September quarter jumped 25.2% compared to last year, reaching an all-time high. This surge isn’t being driven by restless borrowers or market noise. It’s happening because the potential savings are simply too big to ignore.
Why Refinancing Is Taking Off
Following recent rate cuts, lenders have been adjusting their pricing, but not evenly. Some have passed on reductions in full, while others have trimmed only a portion. The result? Two borrowers with the same loan size, similar profiles, and similar properties can now be paying dramatically different monthly amounts.
For many homeowners, especially those rolling off older fixed rates or sitting on legacy variable rates, the opportunity to save is substantial. Even a reduction of 0.30%–0.50% can add up to thousands of dollars in savings each year.
What’s Driving Borrowers to Switch Lenders
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Older fixed rates are expiring – and the revert rates can be significantly higher than today’s sharper variable options.
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Legacy products aren’t keeping up – many long-standing customers aren’t receiving the same pricing as new borrowers.
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Competitive tension between lenders is rising – which means banks are offering some of their strongest pricing to attract new customers.
Thinking About Refinancing? Here Are 3 Tips
Before you jump into a refinance, here are three things to keep in mind:
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New customers often get the best pricing
Banks compete hardest for new-to-bank borrowers. If you’ve been with your lender for years, chances are your pricing isn’t as sharp as it could be. -
Good deals move quickly
Some lenders are adjusting rates weekly – and in some cases, daily. A great offer today may not be around tomorrow, so timing matters. -
The right loan isn’t always the lowest rate
Structure, flexibility, offset accounts, redraw, and loan features can have a bigger long-term impact than a tiny interest rate difference. Your loan should support your broader financial goals, not just reduce your repayment.
Want to See How Much You Could Save?
Every borrower’s situation is unique – and so is every lender’s pricing. If you’re curious about what today’s market could offer you, CoastFin can compare lenders, assess your options, and make sure any new loan aligns with your strategy and goals.
Now is a great time to check whether your rate is still competitive.
Compare your rate to today’s market and find out what you could save. Contact us today!
