Refinancing Hits 640,000 Loans a Year: Could You Save Too?

New ABA research shows refinancers are locking in rates up to 0.35% lower than their current loan — saving as much as $2,000 a year.

The case for reviewing your home loan has rarely been stronger. New research from the Australian Banking Association reveals that refinancing activity has surged from approximately 438,000 to over 640,000 loans annually over the past six years — a 46 per cent increase driven by borrowers who recognised they could secure a better deal.

According to Australian Broker, which [reported on the research](https://www.brokernews.com.au/news/breaking-news/refinancing-construction-hardship-what-the-abas-new-banking-report-found-289525.aspx), the ABA commissioned economics firm Mandala to prepare the report — titled *The Essential Infrastructure: How Australian Banks Power the Economy*. Its central finding for mortgage holders is direct: refinancers can achieve interest rates up to 0.35 per cent lower than their existing rate, saving up to $2,000 per year or as much as $59,000 over the life of a loan.

In a year when the RBA has delivered three consecutive cash rate rises and household budgets are under sustained pressure, those savings are not a minor convenience. They are material.

A More Competitive Market Is Working in Borrowers' Favour

The growth in refinancing activity is not happening in isolation — it reflects a genuinely more competitive home loan market than existed five years ago.

The major banks' combined share of home loans has fallen from 79 per cent to 74 per cent between 2019 and 2025, a six-percentage-point shift that reflects borrowers being increasingly willing to look beyond their existing lender. At the same time, banks now facilitate up to 80 per cent of all external refinances, meaning the lending system as a whole is actively processing this movement rather than resisting it.

ABA CEO Simon Birmingham said the numbers spoke for themselves. "Strong competition amongst banks is seeing more than 640,000 mortgage holders refinance their home loans each year," he said in a media release accompanying the report. "High refinancing rates show that barriers to changing banks have come down, while competition has gone up, with evidence showing that switching can save the average household up to $2,000 a year in mortgage interest payments."

This context matters particularly in the current rate environment. Three cash rate increases since the start of 2026 have pushed repayments higher across the board for variable rate borrowers. If your existing rate was set or last reviewed more than six months ago, there is a strong possibility a better offer exists in today's market. The first step is simply to [compare the most competitive home loans available](/home-loans/cheapest) and see how your rate stacks up.

Even a 0.35 percentage point reduction — the upper bound of what the ABA's research suggests refinancers are achieving — is worth running through the [refinance savings calculator](/calculators/refinance-savings) for your specific balance and remaining term. The dollar figure often surprises borrowers who have not done the calculation before.

Construction, Housing Supply, and the First Home Buyer Market

The ABA report extends beyond individual refinancers to paint a broader picture of Australian banks' role in the housing market — one that is directly relevant to first home buyers navigating a difficult entry point.

On supply, Australian banks committed $49 billion in construction finance during FY25, an amount the report says potentially enabled around 110,000 new homes. That contribution matters given the scale of the housing shortfall. The National Housing Supply and Affordability Council's State of the Housing System 2026 report estimates approximately 980,000 new homes will be delivered over the National Housing Accord period — against a government target of 1.2 million. That is a shortfall of at least 220,000 dwellings, even before accounting for global construction cost disruptions.

For first home buyers, the supply gap reinforces why acting on a well-structured loan matters. Banks supported 65 per cent of all property settlements in FY25, equivalent to 445,000 transactions. Over the past five years, they have helped more than 670,000 first home buyers enter the market. If you are working out whether you can afford to buy in the current environment, the [first home buyer hub](/home-loans/first-home-buyer) and the [borrowing power calculator](/calculators/borrowing-power) are the right starting points to understand your options at today's rates.

Hardship Arrangements: The Numbers Tell a Reassuring Story

For borrowers already feeling the pressure of higher repayments, the report contains data worth knowing.

More than 280,000 hardship notices relating to home loans were responded to by Australian banks in FY25. Critically, 99.2 per cent of those cases were resolved with the household retaining their home — a figure drawn from ASIC data. That outcome rate underlines a simple but important point: if you are struggling with repayments, contacting your lender before missing a payment gives the system the best possible chance to help you.

The hardship data sits alongside the refinancing data as two sides of the same story — a lending market that is more competitive and more flexible than many borrowers assume.

Is Now the Right Window to Refinance?

With the cash rate on hold — but the RBA's own statement leaving open the possibility of further hikes — the current period is arguably the clearest window for refinancing borrowers have had this year. Acting now, while conditions are stable, allows you to compare offers, negotiate, and settle without the added uncertainty of an imminent rate decision.

The key steps are straightforward: compare your current rate against the market; calculate the potential annual and lifetime saving using the [refinance savings calculator](/calculators/refinance-savings); and factor in any exit or establishment costs to determine your break-even point.

More than 640,000 Australians made that decision in the past year alone. If your home loan has not been reviewed since the current tightening cycle began, the data suggests there is a strong chance you could be one of them.