All Big Four banks have hiked home loan rates. Is now a good time to refinance?

By Evlin DuBose · · 3 min read
Fact Checked
Advertiser disclosure
A home loan holder looks at the crumbling cliff behind them.

With CBA, NAB, ANZ, and Westpac each announcing another 0.25% rate hike for new and existing home loan customers, Aussie mortgage holders are wondering one thing: can I save by switching home loans?

Since May 2022, we’ve seen 3.75% worth of variable home loan rate rises from the Big Four, which is 0.75% higher than the upper serviceability limit on new home loan applications.

This means if you took out your mortgage in the last few years, you may be paying more now than you were ever expected to and approved for.

“The reason cited for these hikes, according to the banks, is an increase in funding cost pressures, which then have a ripple effect on interest rates,” says Mozo banking expert, Peter Marshall.

Savings accounts and term deposits have seen helpful boosts, but these have not been nearly as dramatic as the added burden to mortgagors, which have added anywhere from hundreds to thousands of dollars extra to monthly repayments.

“Whilst a rate hike is never good news for consumers, there’s no reason you should be paying more for your mortgage," explains Marshall.

"So if you’ve been affected by the recent rate rises, now could be a great time to make the switch.”

How much can I save by refinancing

If you’ve seen your home loan rate go up in the last year and need to know what it means for your wallet, let's dive in. We’ve taken our home loan repayments calculator for a spin to help you understand these changes, and see how much you can save by switching home loans.

If you were borrowing $500,000 and paying principal and interest over 25 years on the current average loan rate in Mozo’s database of 6.12% (for owner-occupiers making P&I repayments), your monthly repayments would have come to $3,258.

But, if your lender hiked your rate by 25 basis points, you’d pay an extra $78 a month or $936 a year.

However, if you were to refinance your home loan for the current lowest rate in our database of 4.89%, you’d only pay $2,891, saving you $4,404 that year.

If your home loan rate just went up and you’re thinking of refinancing, check out some of the great offers below, or head over to our home loan comparison tool to find a deal that works for you.

Refinance home loans - last updated 7 May 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Featured Product
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    Unloan Variable

    Owner Occupier, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    5.90% p.a.

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

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  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

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  • Flex Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.19% p.a. variable
    6.43% p.a.

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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  • Featured Product
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    Unloan Variable

    Investment, LVR <80%

    interest rate
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    Initial monthly repayment
    6.29% p.a. variable
    6.20% p.a.

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

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  • Variable Home Loan 90

    Principal and Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.04% p.a. variable
    6.06% p.a.

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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