Refinance Home Loan Australia 2026: Rates Hit 6.49% After RBA Hike — Should You Switch?
Australia Home Loan Refinancing 2026: Should You Switch Banks After the RBA Rate Hike? Australia | October 4, 2026 Australian mortgage borrowers are being forced to do their sums again. The Reserve Bank of Australia has lifted the cash rate by another 25 basis points to 4.60% , its highest level in 15 years, after warning that inflation remains too high and that several upside risks have become more serious. As banks pass the latest increase through to home-loan customers, the average variable mortgage rate for owner-occupiers is expected to move to about 6.49% , according to rate data reported on October 4. At the same time, some lenders are still advertising rates close to 6%, creating a potentially meaningful gap between borrowers who remain on an expensive loan and those able to refinance. For a borrower with a $600,000 mortgage and 25 years remaining , moving from the average rate to one of the cheaper offers could reduce monthly repayments by about $180 , based on the compa...