Record $371bn in Home Loans Switched Lenders in FY26
More than 664,000 Australians swapped home loan lenders last year as cost-of-living pressure and rate competition drove the biggest switching surge on record.
Australian borrowers refinanced at a record pace in the year to June 2026, with more than $371 billion in home-loan balances moving between lenders — a volume that averaged over $1 billion per day, according to new analysis of APRA banking data by financial-services technology company Elula.
The figures confirm that mortgage competition has shifted decisively. Keeping a borrower is now as strategically valuable as writing a new loan.
The scale of Australia's refinancing wave
Elula's analysis of APRA data for the year ending 30 June 2026 found that around 664,000 home-loan customers switched lenders during the financial year. That works out to more than 1,800 customers a day — or roughly 1.3 customers per minute, each carrying more than $700,000 in mortgage debt.
Home-loan churn rose by more than $41 billion over FY26 compared with FY25 — a 13 per cent increase — while the number of customers leaving their lender climbed by around 48,000. The Adviser reports that refinancing was the principal driver, with the number of customers moving an existing mortgage to another lender increasing by 9 per cent in FY26 from the prior financial year.
Of all borrowers who changed lenders, 63 per cent were refinancing an existing property. The remaining 37 per cent moved because they had sold and were buying again — and nine out of 10 of those property sellers took their next loan to a competing bank, rather than staying with their old one.
Elula CEO Josh Shipman described the conditions as "an almost perfect storm" combining cost-of-living pressures, government policy changes to negative gearing, rising interest rates, and falling property prices. The convergence of those forces has made borrowers far more willing to shop around.
Winners, losers, and what it means for you
The spoils of refinancing competition have not been shared evenly. Macquarie Bank recorded the strongest home-loan book expansion of any lender during FY26, growing at 3.9 times the system rate and adding more than $39 billion in home lending compared with FY25. Among the major banks, the Commonwealth Bank of Australia (CBA) grew in line with the system at 1.0 times the market rate. Westpac grew at 0.9 times the system rate, the National Australia Bank (NAB) at 0.7 times, and Australia and New Zealand Banking Group (ANZ) at 0.6 times, leaving each below overall market growth.
At the other end, the Bank of Queensland (BOQ) recorded the largest contraction, with its home-loan book shrinking by around $5 billion during FY26, equivalent to -1.3 times the system growth rate. Bendigo and Adelaide Bank also contracted, losing nearly $450 million, or -0.1 times the system rate.
Several mutual and customer-owned banks performed well above system: Teachers Mutual grew at four times the system rate following its merger with Australian Mutual, while Newcastle Greater Mutual expanded at 1.6 times through organic growth.
For everyday borrowers, the takeaway is straightforward: lenders are competing hard right now, and that competition can work in your favour. If you have not reviewed your home loan in the past 12 months, the market has likely moved without you. Use the refinance savings calculator to model what a lower rate could mean for your repayments, or compare refinance options to see what's available.
The friction that can slow borrowers down
Despite the surge in switching activity, not every borrower finds the process smooth. The Mortgage & Finance Association of Australia (MFAA) told a Senate select committee on intergenerational housing inequity that its members continue to encounter variation between lenders in discharge time frames and procedures — including non-standardised timelines, manual processes, and situations where a broker cannot act on a borrower's behalf due to lender policy.
MFAA CEO Anja Pannek said those barriers fall most heavily on borrowers who can obtain a better rate elsewhere but cannot access it quickly. She called for a clearer and more consistent discharge framework across the home lending system, noting that the current situation "slows down the process" to the detriment of consumers.
If you are considering refinancing but unsure where to start, an experienced broker can help identify which lenders combine competitive pricing with a genuinely efficient switching process. Check your borrowing power first — your serviceability position may have shifted since your loan was originally written, which can open or close doors depending on your circumstances.
For investors, the data carries an additional message. With nine out of 10 property sellers choosing a different lender when they buy again, the relationship between a borrower and their lender is clearly being treated as transactional on both sides. If your investment loan has not been reviewed recently, now may be the time to explore investor home loan options and ensure your current structure is still working for you.
Elula's analysis makes one thing clear: the mortgage market is more dynamic than it has ever been, and borrowers who take a passive approach to their home loan are increasingly the ones missing out.