Refinancing in 2026: Why more Australians use brokers

For many Australians, a home loan is one of their biggest ongoing financial commitments. But the loan that suited you when you first bought your property may not always be the right fit years later.

Changes to home loan interest rates, your financial position and the wider lending market can all create reasons to review what you are paying. That is where refinancing comes in.

And Australians are increasingly turning to a mortgage broker for help. In March 2026, mortgage brokers facilitated a record 81% of new residential home lending in Australia, according to the Mortgage & Finance Association of Australia (MFAA).

The goal isn’t necessarily to find the lowest advertised rate or access every lender available. It’s about understanding your position and finding a loan that gives you what you actually need. Sometimes, all you need is enough.

What does refinancing a home loan mean?

Refinancing means replacing or restructuring your existing home loan, either by moving to another lender or negotiating a different loan with your current lender.

People may refinance a home loan to secure a more competitive interest rate, lower repayments, access useful loan features, restructure debt or unlock home equity.

The refinancing process generally involves reviewing your existing mortgage, comparing suitable alternatives, assessing refinancing costs and applying for the new loan. Because lender policies and circumstances differ, the right option for one borrower may not be right for another.

Why are more Australians refinancing their home loans in 2026?

Refinancing remains a significant part of home loans in Australia.

The latest Australian Bureau of Statistics data shows that in the June quarter of 2026 there were 66,449 external owner-occupier refinances. The annual growth rate being 2.8% for the number of investor loan commitments

At the same time, brokers are playing an increasingly prominent role in Australian home lending. MFAA data shows broker market share increased from 55.3% in March 2018 to a record 81.0% in March 2026.

Why? For borrowers comparing mortgage rates in Australia, the decision can involve much more than finding a lower headline rate. Loan features, fees, borrowing capacity, lender policies and long-term loan repayments can all affect whether switching home loans actually leaves you better off.

Why use a mortgage broker when refinancing a home loan?

A finance broker or mortgage broker can review your existing loan against alternatives from the lenders available to them and help you understand how different options fit your circumstances.

Rather than approaching one lender at a time, mortgage broker advice can help you compare interest rates, fees, loan features and structures such as fixed and variable rates.

Importantly, a broker can also help assess whether refinancing makes financial sense after considering potential refinancing fees and your longer-term goals.

It isn’t about having every option. It’s about finding enough of the right options to make an informed decision.

When should you consider refinancing your home loan?

There is no universal time when everyone should refinance. However, several situations can make it worth reviewing your current mortgage.

Your interest rate is no longer competitive

If comparable loans are available at lower rates, refinancing may create interest rate savings and potentially lower mortgage repayments.

Your fixed-rate period is ending

Coming to the end of a fixed term can be a useful time to review the market and determine whether another fixed, variable or split structure better suits your circumstances.

Your financial circumstances have changed

A change in income, expenses, family circumstances or financial goals may mean the loan structure you originally chose is no longer appropriate.

You want to access home equity

If your property has increased in value or you have reduced your loan balance, refinancing may allow you to access equity for purposes such as renovations or investment, subject to lending criteria.

You want different loan features

An offset account, redraw facility or different repayment structure may provide more value than simply chasing a lower advertised rate.

How much could you save by refinancing your home loan?

There is no single figure because potential savings depend on your loan balance, remaining term, current rate, new rate and the costs of switching.

For context, PEXA research found homeowners who refinanced saved an estimated $1,524 per year on average, while those who switched lenders saved an estimated $1,908 per year. These figures were based on 2022 research and interest-rate savings only, so they should not be treated as an estimate of what you could save today.

When comparing home loan options, a mortgage broker can help you look beyond the interest rate and consider the total cost, features and structure of the loan.

Is refinancing your home loan always worth it?

No. A lower rate doesn’t automatically mean refinancing will leave you better off.

Discharge fees, application or valuation costs, fixed-rate break costs and potentially lenders mortgage insurance can reduce the benefit of switching. Extending your loan back over a longer term may also lower monthly repayments while increasing the total interest paid over time.

This is why the numbers matter. Before making a decision, compare the potential savings against all upfront and ongoing costs and consider how long you expect to keep the loan.

You don’t need every home loan. You just need the right one.

Refinancing isn’t about changing lenders for the sake of it. It’s about making sure your home loan continues to support where you’re going.

Whether that means reducing repayments, finding a more suitable structure or simply confirming that your existing loan remains competitive, the right answer will depend on your circumstances.

All you need is enough. Talk to an Inovayt mortgage broker about whether refinancing could put you in a better position.

FAQs

Is it better to refinance through a mortgage broker or directly with a lender?

Both are options. Going directly to a lender limits the discussion to that lender’s products, while a mortgage broker can compare options across the lenders available to them and provide guidance based on your circumstances.

How much does it cost to refinance a home loan?

Refinancing costs vary between lenders and loans. They may include discharge fees, application fees, valuation costs, settlement fees and fixed-rate break costs. Consider these costs when calculating whether refinancing offers a genuine financial benefit.

Does refinancing affect your credit score?

Applying to refinance generally involves a credit enquiry, which appears on your credit report. Multiple credit applications within a short period can influence how lenders assess your credit profile, so it can be beneficial to understand your options before submitting applications.

Can you refinance a home loan with the same lender?

Yes. You may be able to negotiate a different rate or switch products with your existing lender without moving your mortgage elsewhere. However, comparing that offer against other suitable lenders can help you understand whether staying provides enough value.