PEXA Insights’ Refinancer Sentiment Research report revealed borrowers who refinanced with a new lender were able to get more bang for their buck than those who stayed with their current provider. 

The survey of 2,889 people conducted between May to June, and extrapolated using population data, found 1.04 million Australians refinanced their home loans over the past 12 months. 

Of those one million refinancers, those who chose to refinance to a different lender were able to achieve an average annual saving of $1,908.

This is significantly higher than the $384 annual savings of those who refinanced with their existing lender. 

Fifty-five per cent of refinancers stayed with their existing lender and were able to secure a 0.1% interest rate reduction.

Meanwhile, those who switched to a new lender were able to reduce their interest rate by approximately 0.5%.

Over the next two years, more than two million Australians will consider refinancing their home loans.

PEXA Insights Head of Research Mike Gill said current inflationary pressures and monetary tightening are the reasons for record high levels of refinancing.

“This momentum is set to continue, as mortgage holders are investing on average six weeks into researching options that best suit their circumstances,” Mr Gill said.

“Our consumer research confirms there is a level of uncertainty felt by mortgage holders.

“An estimated 71% feel anxious about the prospect of rising interest rates, 49% are worried about their job/financial security, and 73% are regularly reviewing their interest rate against market trends.”

What are the key drivers for refinancing? 

The report found 81% of refinancers were intending to refinance within the next two years.

The majority of the respondents cited the following as their motivations for refinancing:

  • Wanting a more competitive interest rate (29%)
  • Needing to save money (9%)
  • Broker recommendations (8%)

Other key reasons for refinancing also included changing personal circumstances, wanting to lock in a fixed rate, and anticipation of higher house prices. 

Chief Lending Product Officer at ubank Kanishka Raja said Aussies are looking to refinance their mortgage to get ahead financially.

“Finding a more competitive rate means Aussies can potentially save on their repayments and take advantage of other product features like offset accounts, which also helps people repay their home loans faster,” Mr Raja said.

Ubank has recently boosted its cashback offer to $3,000 to $4,000 for those who refinance to the digital lender.

The offer is $3,000 for those refinancing at least $250,000, and $4,000 for refinancing $1 million or more.

Applications must be made by 30 November with settlement by 31 January 2023.

The offer excludes refinances within the NAB group, of which ubank is part.


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Bailey Rytenskild via Unsplash

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