Should You Refinance in 2026? A Straight Answer

When refinancing is worth it

1. Your rate is clearly above what is available today for a borrower with your profile.
2. You want to consolidate more expensive debts into your home loan at a lower rate, done carefully and with eyes open.
3. You need features your current loan does not have, such as a proper offset account.
4. Your situation improved. More equity can mean escaping Lenders Mortgage Insurance or a risk based rate.

When it is not worth it

1. The saving is small and the switching costs eat it up.
2. You are close to selling.
3. Your income or credit position has weakened, which can make now the wrong time to apply.
4. Stretching your loan term back out to thirty years to lower the repayment, without meaning to, can cost you far more in interest over the life of the loan. This one catches people.

Lenders tend to compete most aggressively for refinance volume in the days right after a Reserve Bank decision. It is not the only thing that matters, but a well timed review can land you a better discount.

I check your current rate against what your own lender and the wider market would offer you today, I run the numbers on the switching costs so we are comparing like with like, and I only recommend the move if you come out genuinely ahead. If you are better off staying put, I will tell you that too.