Refinancing activity has hit new highs in 2025, as Australians take advantage of lower interest rates and growing competition among lender
According to the Australian Bureau of Statistics, the June 2025 quarter saw a 20.9% increase in external refinancing compared with the same time last year. The trend has been building steadily, with refinancing numbers up 0.8% from the March 2025 quarter alone.
Why refinancing is on the rise
This surge isn’t surprising. The Reserve Bank of Australia delivered three rate cuts this year — in February, May and most recently in August — and lenders have responded with sharper home loan deals. In many cases, banks have adjusted their rates by more than the official cuts, giving borrowers even greater incentive to review their loans.
For many households, this environment has created the confidence to make a move. Lower repayments, improved cash flow and the ability to free up equity are just some of the reasons borrowers are choosing to switch.
More than just chasing a lower rate
While the promise of a cheaper rate is often the trigger, refinancing can be about much more:
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Structuring your loan smarter to fit your financial goals
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Unlocking equity to fund renovations, investments or other priorities
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Consolidating debt to simplify repayments
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Future-proofing by ensuring your lending strategy still fits your circumstances
But refinancing also comes with complexity. Fees and charges can reduce the benefit of switching, and each lender’s credit policy can change your borrowing power. That’s why a tailored lending strategy — not just a rate comparison — makes all the difference.
Is now the right time to refinance?
With rates moving and competition heating up, it’s the perfect time to review whether your current loan is still competitive. Even if you refinanced a year ago, the combination of rate cuts and lender changes could mean new opportunities are on the table today.
At GEN Finance, we go beyond the numbers. We review your loan in the context of your bigger goals, ensuring every lending decision creates opportunities for the future.
👉 Want to know if your lender is still competitive? Let’s review your loan.
