This year the Reserve Bank of Australia (RBA) has been keeping home owners (and potential home owners) on the edge of their seats with two consecutive rate cuts… and there might be more coming 👀

When the cash rate drops, it’s like your mortgage goes on sale. Lenders start battling it out for your business, which means you have the opportunity to get lower interest rates and juicy deals. A property report by PEXA revealed that Australians who refinanced their mortgage saved an estimated $1,524 per year. Talk about a money win! 

If you’re a home owner, stop sleeping on this money-saving-opportunity. It’s time to see if your home loan is still working for you, or if it's time to swipe left and find a better match.

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✨ Refinance your mortgage 

Refinancing your mortgage means replacing your current home loan with a new one. It’s a bit like keeping your current phone but switching to a cheaper plan with more data. Win-win!

While homeowners may refinance for a number of reasons, the most common reason is to get a lower interest rate.

For example: 

• The average home loan amount is about $666,000 (Dec 2024). 
• The average Australian home loan interest rate is 6.24% p.a. (April 2025)
• If the average Australian home loan interest rate was to drop just 0.4% (down to 5.84% p.a.), you would save $60,814 in interest over a 30 year period. 

That could be a deposit on a whole new property! 

Some banks even offer upfront incentives like cashback deals if you refinance with them. But keep in mind that refinancing can incur some costs like a break fee from your current bank, or the valuation and paperwork fee with your new lender. 

So always run the numbers first (or speak to a mortgage broker) before making the jump.

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‍✨ Renegotiate on your existing home loan 

Research shows, the average refinance takes 4.2 weeks to finalise…plus a bunch of paperwork. If you’re not keen on that (we get it), there is still another option - renegotiating your existing home loan with your current lender. 

Just pick up the phone and ask your lender if they can sharpen your rate. Think of it like haggling for a better deal on Facebook marketplace, only this time, you could be saving thousands of dollars. 

Regardless of RBA rate movements, it’s good practice to try and renegotiate your home loan with your existing lender annually to make sure you’re still getting the best rate. 

💡 Pro tip: Banks don’t want to lose good customers, so they’ll often play ball if you ask nicely and confidently. And if you’re not sure what to say, Flux app users get access to a ready-made script (basically your financial wingman) in our How to renegotiate your home loan rate with your current lender article.

The RBA might be calling the shots on the cash rate, but you’re the one in control of your home loan game. Whether it’s refinancing or renegotiating your loan, there’s always something you can do to make sure you’re getting the best deal. So don’t wait for your bank to make the first move! 💸