Let’s be straight with each other about something.
When rates were rising quickly in 2022 and 2023, staying put sometimes made sense. You were watching where things would land before making a move. That’s understandable.
But it’s 2026 now. The RBA cut rates multiple times through 2025. The cash rate which peaked at 4.35% in late 2024, a 13-year high and now sits at 3.85%, and most major forecasters expect further movement through the year.
Continuing to “wait and see” at this point? That’s not caution. That’s inertia. And inertia is costing a lot of Australians real money.
This Is All Kinds of Wrong: The Myths Keeping People From Refinancing
Myth 1: “My bank would have told me if I qualified for a better rate”
Your bank may be a good institution, but it is not in the business of proactively reducing your interest rate. Lenders compete for new customers. Existing customers tend to stay unless they decide to leave. This is a well-established pattern in Australian banking and it’s one reason the government and regulators have long encouraged comparison shopping.
Myth 2: “Refinancing is too complicated and not worth the hassle”
It’s not OK to let complexity be the reason you don’t review your biggest financial commitment. In practice, when you use a mortgage broker, most of the complexity is handled for you. A good broker manages the comparison, the application, the communication with the new lender, and the settlement process.
The paperwork involved is genuinely manageable. The time investment is typically a few hours over several weeks not months of your life.
Myth 3: “I probably don’t have enough equity to make it worthwhile”
Well, you can see how rising property values change this calculation. Australian dwelling values rose an estimated 8.6% through 2025. If you’ve owned your home for a few years, your equity position may be considerably better than you realise.
The key threshold most lenders use is 20% equity (an LVR of 80%). Below that, Lenders Mortgage Insurance can become a consideration. Above it, you’re in a stronger negotiating position and often eligible for materially lower rates.
What Does Actually Work: The Honest Checklist
If you’re genuinely thinking about whether to refinance, these are the things worth checking — honestly, in order:
- Do you know your current interest rate? Around 8% of borrowers admit they don’t, according to Money.com.au research. That’s the starting point.
- How long have you had your loan? If you’re planning to extend the term back to 30 years, make sure the savings still stack up after accounting for that.
- What are your current fees? Refinancing typically involves a discharge fee of $350–$500 plus application fees at your new lender. These costs are real — they need to factor into your break-even calculation.
- What does your property’s current value look like? An informal market check or a formal valuation can tell you your LVR which drives the rates you’ll qualify for.
- What’s available in the market right now? This is where a broker genuinely earns their place. The difference between the best and worst rates in the market for a given borrower profile can be significant.
A Note on Perth and Western Australia
For WA homeowners specifically, the picture is particularly worth reviewing. Perth property values have been among the strongest performers nationally over the past two years. That means many Perth homeowners have seen their equity positions improve meaningfully which can directly improve the rates available to them.
Whether you’re in Perth, regional WA, or anywhere else in Australia, the starting point is the same: know your numbers, then see what the market offers. Oxygen Home Loans works with borrowers across Western Australia and nationally.
We’ve put together an honest, practical guide to refinancing that walks through exactly what to look at — including the costs, the timeline, and what questions to ask a broker before you start. No jargon, no fluff.
👉 Download our free Refinance Guide → oxygen.com.au | Call: 1300 855 699 | Call Oxygen Home Loans: 1300 855 699
⚠ Disclaimer: This information is general in nature. Please seek independent financial advice suited to your personal circumstances.
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