The RBA held the cash rate at 4.35% in June 2026, and three of four major banks now expect this is where rates will stay. That changes the question you should be asking yourself from “should I fix before the next hike?” to “is my current rate still competitive while the market takes a breath?”
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Refinancing your home loan is worth considering at most points in the rate cycle. But understanding where rates currently sit helps you ask the right questions about your own loan, so that you refinance for the right reasons.
The Reserve Bank of Australia raised has raised the cash rate three times in 2026, bringing it to 4.35% as of May 2026.
The moves were driven by a resurgence in inflation after a period of easing in 2025. According to economists at UNSW Business School, “inflation has not fallen as quickly as expected,” and the cash rate is likely to “stay relatively high for longer.”
In the most recent RBA announcement, the decision was made to hold to at 4.35%, which was widely expected. For more information on the RBA Decision, click here to view the full transcript. Now three of four big banks say 4.35% is the peak in the current rate cycle. This creates a golden window of opportunity to review things without panic or rushing. Whether you’re on a variable rate or fixed rate, with the amount of change in the lending landscape over the past 6 months, the rate you’re paying now may not be the sharpest available and the best option for your situation and needs.
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The short answer is yes, and the hold is actually what makes now the right time to look. When rates are moving, lenders price defensively. When rates pause, the market opens up. Competition between lenders increases, and the gap between the rate your current lender has you on and the rate a better-matched lender could offer you tends to widen.
The three consecutive RBA hikes from February to May 2026 pushed most standard variable rates higher. But lender pricing is not uniform. Out-of-cycle movements have already occurred, with some lenders adjusting fixed and variable rates independently of the RBA all throughout 2026. If your loan hasn’t been reviewed recently, there’s a chance it has drifted. A review now, while the cash rate is stable and lenders are competing, is the lowest-friction window you’ll potentially have this year to reassess your position and options.
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This is the question almost every homeowner is asking us right now. As of late May 2026: ANZ, CBA, NAB, and Westpac all moved to a hold consensus, with CBA the most optimistic, forecasting rates on hold through 2026 and potential cuts in 2027 if inflation trends toward the target band. That doesn’t mean another hike is off the table entirely. The RBA’s own forecasts still show inflation remaining above the 2-3% target band through most of 2026, and the Middle East oil situation remaining a potential upside risk for fuel costs and headline inflation.
When distinguishing between the options, fixed rates give you certainty for a set term but generally carry higher break costs and sit higher than variable rates. On the other hand, variable rates move with the market, are normally priced lower than fixed rates and generally have no or lower break costs. A split loan does both: part of your loan is fixed, part is variable, giving you some stability and some flexibility at the same time.
There is no universally right answer. The right structure depends on your income, risk tolerance, property goals, and how long you plan to stay in the home. This is why a conversation with a trusted mortgage broker adds value, because a good broker doesn’t just compare rates, they model scenarios, understand your needs and goals, push lenders to offer better deals, and ultimately provide you with the best options to consider right now. For more information on the differences between fixed and variable rate home loans and different structures available, click here.
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The question to ask yourself is simple: when did you last have your home loan reviewed by someone who wasn’t your bank? If the answer is more than 6 months ago, your rate has probably moved relative to what’s available. The average Queensland mortgage is substantial enough that even a 0.25% to 0.50% improvement translates to hundreds of dollars per month. On a $600,000 loan, a 0.50% rate reduction is roughly $182 per month at current rates (This is illustrative only, not a guarantee of your outcome; actual savings depend on your loan balance, remaining term, and lender fees).
Our Mortgage Refinance Calculator can help give you an idea of what a rate change might mean for your repayments. It won’t tell you exactly what you’d be offered, as that requires a full assessment and conversations with lenders, but it gives you a useful starting point for the conversation.
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The honest answer for most people is no. Banks are not structured to proactively reward loyalty. Their pricing teams focus on acquisition: the rates on the front page of their website, the offers for new customers. If you’re an existing customer and haven’t asked if your bank can do better, you’re almost certainly not on the best rate that lender could offer you, let alone the best rate available in the market.
This is one of the clearest arguments for letting a mortgage broker review your home loan and guide you through the process. The Mortgage and Finance Association of Australia (MFAA) reported that mortgage brokers settled 81.0% of all new residential home loans in the March 2026 quarter, the highest market share on record. That’s not a coincidence. Brokers shop the entire market and compare hundreds of options on your behalf to find you the best options on the market tailored to your needs. Unlike banks, brokers are also obligated by Best Interest Duty to recommend not only the lowest overall cost and rate options, but what’s actually right for your situation, not what’s most convenient for one lender.
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Our Head of Home Loans, Bill Robb, who has 26 years of industry experience, shared an example of what a refinance review can uncover. “Recently our team worked with a customer who had been with the same lender for four years. They assumed their rate was fine because they hadn’t heard otherwise. When we reviewed it, we found a solution that not only refinanced their current loan but also consolidated some additional debt they were carrying. We kept the loan under 80% LVR and reduced their interest rate while lowering their overall monthly repayments by $1,300 per month. That was money they were able to put toward the renovations they’d been putting off for two years.”
This is why a regular review matters, because you cannot know whether your loan is still competitive if you never check.
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Some of the reasons refinancing makes sense include if your home loan rate hasn’t been reviewed recently, your property value has grown and your LVR has improved, you’re carrying high-interest debt that could be consolidated, your current loan lacks features like an offset account that would reduce your interest, or your fixed term is approaching its end, and you want to be ready for what comes next.
It may not be worth it right now if you’re very close to paying off your mortgage, your break costs outweigh the projected savings, or your financial position has recently changed in a way that could affect approval.
The honest answer is that refinancing looks different for every borrower. The only way to know whether it makes sense for you is to review the actual numbers instead of trying to make general assumptions.
The fastest way to find out is a conversation with a mortgage broker, who can look at your actual loan, not a generic calculator. Our experienced team handle the heavy lifting: pulling the comparison together, running the numbers, and telling you straight whether switching makes sense or not when considering all the variables.
Check out our Home Loan Refinance page to learn more about the process and start your free home loan review today!
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Regardless of where you are in your home loan journey, the RBA hold creates a real opportunity to ask the question: Am I paying more than I should be right now?
Using a moment of market stability to check that you’re not paying the loyalty tax with your bank is a smart decision, and a much better way to look at things, rather than urgency for the sake of urgency. If the answer is that your rate is already competitive, great. You’ll have that confirmed. If there’s a better option, you’ll know what it is and what it would take to get there.
You don’t have to commit to anything to find out where you stand, and what your options look like. Here at Fox Home Loans, as a trusted mortgage broker on the Sunshine Coast for people all over Australia, we offer a free home loan review as part of our process. Where we compare your current loan against what’s available in the market, run the numbers on your specific situation, and give you a clear answer on whether switching could genuinely improve your position.
Give our friendly team located in our Sunshine Coast office a ring today on 1300 665 906, or if you prefer you can get started online here with our 5-minute online form.
 Bill Robb |
Bill has over 26 years of experience working in the finance industry. He has worked across a number of different businesses including Home Loans, Personal Loans, Collections and Insurances. Bill's passion is to utilise his knowledge and experience in the industry to assist clients in meeting their financial goals.
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Reviewed by: Nathan Drew ✅ Fact checked 📅 Last updated: Jun 25, 2026 |
