Refinancing in 2026: What Borrowers Should Know!

1. Refinancing Demand Remains Strong

Homeowners are continuing to review their lending options due to changing interest rate conditions, the expiry of older fixed‑rate terms, and the desire for more flexible loan features. Many borrowers are comparing lenders to find improved repayments, better features, or more stability in their financial planning.

A large portion of refinance activity is being driven by:

• Desire for lower monthly repayments

• Access to offset/redraw features

• Simplified digital banking tools

• Consolidating multiple debts into one structured home loan facility

2. Lenders Are Updating Their Credit Policies

While every bank has its own assessment approach, several broad trends are emerging across the industry:

✔ More detailed analysis of living expenses

Lenders increasingly look at both declared expenses and real bank‑statement behaviour. Consistent spending patterns and responsible account conduct help an application.

✔ Stronger focus on repayment stability

Assessors look at how comfortably borrowers can manage repayments under different conditions, even when interest rates change.

✔ Closer review of existing liabilities

Short‑term debts, credit cards, and buy‑now‑pay‑later products are assessed more carefully, as they directly affect borrowing power.

✔ Faster turnaround for returning customers

Many banks offer simplified documentation pathways for existing clients refinancing internally, making it easier to secure a sharper rate without switching lenders.

These trends make strong financial presentation more important than ever.

3. Why 2026 Offers Good Opportunities for Refinancing

✔ 1. Competitive lending environment

As lenders aim to attract high-quality borrowers, many are offering:

• Discounted variable rates

• Flexible fixed‑rate splits

• Fee waivers on certain products

• Enhanced online application processes

This competition benefits borrowers who are organised and present a clean financial profile.

✔ 2. Better options for consolidating debts

Refinancing can help simplify multiple obligations, reduce overall repayments, and provide clearer budgeting for households managing several liabilities.

✔ 3. Access to improved loan features

Today’s home loans typically include:

• Offset accounts

• Multiple splits

• Redraw access

• Digital budgeting tools

• Extra repayment flexibility

These features can provide long‑term financial benefits beyond the interest rate alone.

4. Practical Steps to Strengthen Your Refinance Application

✔ Step 1: Improve Account Conduct

Three months of clean banking makes a major difference. Try to avoid:

• Overdrawn accounts

• Dishonours

• Irregular cash withdrawals

• High gambling spend

• Large unplanned transfers

Strong conduct signals responsible financial management.

✔ Step 2: Streamline Liabilities

If possible:

• Pay down credit cards

• Reduce buy‑now‑pay‑later usage

• Consolidate smaller debts

• Close unused credit facilities

This immediately improves borrowing capacity.

✔ Step 3: Understand Your Spending

Lenders assess essential vs discretionary spending. A short-term budget review helps ensure your declared figures match actual behaviour.

✔ Step 4: Prepare Required Documents Early

Most lenders require:

• Recent payslips

• Employment evidence (if requested)

• Last 90 days of bank statements

• Loan statements for all debts

• Savings/offset evidence

• Identification documents

Organised documentation reduces delays and strengthens application quality.

5. When It Makes Sense to Refinance

Refinancing may be worth considering if:

• Your current rate has increased significantly

• You’re finishing a fixed-rate term

• Your lender isn’t offering competitive pricing

• You want new features (offset, split loans, redraw)

• You want to consolidate higher‑interest debts

• You’ve improved your financial profile over the past few months

A structured review every 12–18 months is a smart approach.

Key Takeaways

• Borrowers in 2026 have more refinancing options due to increased lender competition.

• Strong bank conduct, realistic expense planning, and reduced liabilities significantly improve outcomes.

• Reviewing loan features — not just rate — is essential for long‑term financial benefit.

• Preparing documents early and understanding lender expectations helps streamline the process.

Compliance Disclaimers

Information is general in nature and does not constitute financial advice. Consider your circumstances and seek professional advice. Credit assistance is subject to lender criteria and responsible lending obligations.