If you haven’t reviewed your home loan in the past year, you could be paying thousands more than you need to.
In 2025, with Bank of Queensland (BOQ) dropping its two-year fixed rate to 4.89% and the Reserve Bank of Australia (RBA) signalling possible rate cuts, it’s an ideal time for Australian homeowners to explore refinancing.
Whether you live in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, or Darwin, refinancing could help you pay less interest, shorten your loan term, or free up cash flow for other priorities.
Why Refinance in 2025?
1. Record-Low Fixed Rates (Under 5%)
- BOQ’s 4.89% two-year fixed rate is the most competitive for owner-occupiers with a 20% deposit.
- NAB and ANZ have both cut to 5.19% for two-year fixed terms.
- 18 lenders currently offer fixed rates under 5%, creating strong competition.
2. Potential RBA Rate Cut
If the RBA reduces the cash rate this year:
- Over 30 lenders could offer variable rates under 5.25%
- Average variable rates could drop to around 5.54%
- Many big four bank rates could fall to the low 5.3% range
3. Cashback and Fee Waiver Offers
Some lenders are offering thousands in cashback or waiving application fees to attract refinance customers.
The Benefits of Refinancing
- Lower Monthly Repayments – Reduce your rate and instantly save.
- Shorter Loan Term – Keep repayments the same but pay off your mortgage faster.
- Switch Loan Types – Move from variable to fixed or split for stability and flexibility.
- Access Equity – Use built-up home equity for renovations, investments, or debt consolidation.
Capital City Refinancing Opportunities
- Sydney: High property values = more equity to leverage for better deals.
- Melbourne: Strong lender competition offers great bargaining power.
- Brisbane: Growing market means recent buyers may already have equity.
- Perth: Rising home values create favourable refinancing conditions.
- Adelaide: Low average loan sizes mean small rate drops have a big impact.
- Hobart: Equity gains from past years can help secure better rates.
- Canberra: Stable incomes from public sector roles can boost approval chances.
- Darwin: Regional lending policies may offer additional flexibility.
Rate Savings Example
On a $600,000 loan with 25 years remaining:
- At 6%, repayments are about $3,865/month
- At 4.89%, repayments drop to $3,482/month
That’s $383 saved per month, or $4,596 per year — money you could redirect into your loan to pay it off sooner.
How a Mortgage Broker Makes Refinancing Easier
A broker will:
- Compare 50+ lenders to find the best refinance deal
- Negotiate directly with banks for lower rates and better terms
- Identify loans with features like offset accounts and redraw facilities
- Manage the paperwork to ensure a smooth settlement
- Advise on structuring your loan to meet your financial goals
Case Study: Mark in Adelaide
“I thought refinancing was too much hassle. My broker found a rate under 5%, handled all the paperwork, and now I’m saving over $300 a month — plus I’ll pay off my mortgage years earlier.”
Why Act Now
The combination of sub-5% fixed rates, possible RBA cuts, and generous refinance incentives won’t last forever. Acting now could lock in savings for years.
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See how much you could save by refinancing in 2025. Let Money Tree Mortgage Brokers compare 50+ lenders and find the best deal for you.
