Feeling stuck with an outdated mortgage while interest rates keep shifting? You’re not alone. Thousands of Australian homeowners are discovering they could save tens of thousands by refinancing at today’s competitive rates. With the RBA’s latest cash rate decisions in 2025 creating new opportunities, there’s never been a better time to review your home loan.
In this comprehensive guide, we’ll break down today’s best mortgage refinance rates in Australia, explain how refinancing works, and reveal insider tips to secure the lowest possible rate. Whether you’re looking to reduce monthly payments, access equity, or switch from a variable to fixed rate, we’ve got you covered with up-to-date 2025 information.
Why Refinance Your Mortgage in 2025?
Refinancing your home loan can be one of the smartest financial moves you make this year. Here’s why so many Aussies are making the switch:
✅ Lower Interest Rates – Save $300+ per month on average with today’s competitive offers
✅ Reduce Loan Term – Pay off your mortgage years earlier with better terms
✅ Access Home Equity – Unlock cash for renovations, investments or debt consolidation
✅ Switch Loan Types – Move from variable to fixed (or vice versa) for better security
✅ Better Features – Get offset accounts, redraw facilities or fee-free extras
Current Refinance Rate Trends (July 2025)
- Variable rates: Starting from 5.89% p.a. (comparison rate 6.02% p.a.)
- 1-year fixed: As low as 5.65% p.a.
- 3-year fixed: From 5.99% p.a.
- 5-year fixed: Starting at 6.15% p.a.
Source: RBA cash rate currently at 4.10% (July 2025)
Top 5 Mortgage Refinance Deals in Australia (July 2025)
| Lender | Product | Variable Rate | Fixed 3-Year | Key Features | Refinance Cashback |
|---|---|---|---|---|---|
| ANZ Simplicity Plus | Variable | 5.89% (6.02%) | 5.99% | No annual fee, offset option | $3,000 |
| CBA Extra Home Loan | Variable | 5.92% (6.05%) | 6.04% | Free redraw, wealth package | $2,500 |
| Westpac Flexi First | Variable | 5.95% (6.08%) | 6.09% | 100% offset, mobile app | $3,500 |
| NAB Tailored Home Loan | Variable | 5.90% (6.03%) | 6.02% | Flexible repayments | $2,000 |
| ING Orange Advantage | Variable | 5.87% (6.00%) | 5.98% | No fees, high tech features | $1,500 |
Comparison rates shown in parentheses. All offers subject to lender criteria.
Step-by-Step: How to Refinance Your Mortgage
1. Check Your Current Loan Details
- Know your remaining balance, interest rate, and loan features
- Calculate potential savings using ASIC’s Mortgage Refinance Calculator
2. Review Your Credit Score
- Get a free report from Equifax, Experian or Illion
- Aim for a score above 700 for best rates
3. Compare at Least 3-5 Lenders
- Use comparison sites like RateCity, Canstar or Mozo
- Consider both major banks and smaller lenders
4. Calculate All Costs
- Watch for discharge fees (300−300−400), application fees (0−0−600)
- Factor in LMI if borrowing >80% of property value
5. Get Pre-Approval Before Applying
- Protects you during rate lock periods (typically 90 days)
- Shows real estate agents you’re serious if upgrading
Expert Tips to Secure the Best Refinance Rate
✔ Time Your Application Right
- Lenders often offer better deals at month/quarter-end to meet targets
✔ Leverage Your Equity
- Homes with >20% equity typically get 0.20%-0.50% better rates
✔ Bundle Insurance Products
- Some lenders offer 0.15% discounts for taking home/contents insurance
✔ Use a Mortgage Broker
- Brokers access exclusive wholesale rates not advertised publicly
✔ Negotiate Hard
- 58% of borrowers who ask get fees waived or extra features added
When Refinancing Might NOT Be Worth It
While refinancing can save money, it’s not always the right move:
❌ If you’re near the end of your loan term (fees may outweigh savings)
❌ **When fixed-rate break costs exceed 10,000+∗∗❌∗∗Ifyourcreditscoredroppedsignificantly∗∗sinceoriginalloan❌∗∗Forverysmallloanbalances∗∗(<10,000+∗∗❌∗∗Ifyourcreditscoredroppedsignificantly∗∗sinceoriginalloan❌∗∗Forverysmallloanbalances∗∗(<150,000) where savings are minimal
FAQs About Mortgage Refinancing in Australia
1. How much can I save by refinancing?
The average borrower saves 1,200−1,200−3,600 annually by switching to a lower rate.
2. What’s the lowest refinance rate available today?
As of July 2025, the lowest variable rate is 5.87% (ING) and fixed is 5.65% (1-year).
3. How long does refinancing take?
Typically 2-4 weeks from application to settlement with prepared documents.
4. Will refinancing affect my credit score?
Yes, but only temporarily (usually a 5-15 point drop that recovers in 3-6 months).
5. Can I refinance with the same lender?
Yes! This is called a “product switch” and often has lower fees than changing lenders.
6. What documents do I need?
Recent payslips, 2 years tax returns, loan statements, property valuation, and ID.
Final Thoughts: Is 2025 the Right Time to Refinance?
With rate competition heating up among lenders and cashback offers at record highs, mid-2025 presents one of the best refinancing opportunities in years. Even a 0.5% rate reduction could save the average homeowner $42,000 over a 30-year loan.
Pro Tip: Set aside 2 hours this week to:
- Check your current rate
- Run a quick comparison
- Talk to a broker or two
You might be shocked at how much you’re leaving on the table by sticking with your existing loan.
Have questions about your specific situation? Drop them below – I respond to every comment personally!