One in five homeowners looking to switch-up their mortgage - how to find the right fit

By Sara Borman · · 2 min read
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calculator and house to do the maths on whether to refinance for a better home loan

A new survey from homeloans.com.au has found that 1 in 5 mortgage holders are looking to change their loans for better deals to combat rising interest rates. 

With the RBA having raised rates for five months straight, many homeowners are starting to feel the strain of increased repayments. The anticipation of further rate hikes, along with a soaring cost of living, has many mortgage holders ready to switch things up.

In fact, 21% of those surveyed are looking to make that change in the next 12 months. The main drivers are lower interest rates and additional home loan features, like offset accounts. 

What’s stopping people from jumping ship on their home loans?

The biggest factor keeping people from refinancing their home loan is the fear of fees, according to the same survey. 25% of homeowners referred to worry about high fees as a reason for sticking with their existing mortgage.

There is also the element of comfort. Roughly 20% of mortgage holders admit to being deterred by the hassle of obtaining all of the documentation for a home loan shake-up. Honestly, we know the feeling! When it comes to how much money you could be set to save, the benefits might just outweigh the difficulty of getting your documents together.

How can I compare home loans and find the one for me?

There’s no one-size-fits-all when it comes to home loans. What’s the best home loan for you might not be the best choice for the next homeowner. If you are one of those people looking to refinance, your best option is to do your research.

Since you’ll have a lower loan-to-value ratio (LVR) as you’ve been making repayments on your home loan, you may find options with rates better suited to you. You might also consider newer options from online lenders, or benefit from bundled options on offer at bigger banks.

Use our Switch & Save calculator to work out how much you could save by moving from your current home loan to a lender with lower rates. Compare your options, making sure to pay attention to any fees that could be potential deterrents. 

Thinking about calling it quits with your current home loan? Here are 4 signs you should break up with your lender. Once you’ve decided to make the cut, take a peek at Mozo’s picks for best home loans.

Compare refinance home loans - last updated 20 May 2024

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  • Featured Product
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    Unloan Variable

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    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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  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 60-70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.41% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 20% 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.

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