When the RBA starts cutting, the refinancing conversation restarts for almost every mortgage holder. But the best move isn't always to switch at the first hint of a cut.
Fixed and variable behave differently in falling rate cycles. Variable rates tend to move with the cash rate, though not always in lock-step — lenders pass through partially, or with delay. Fixed rates are forward-looking: by the time the cash rate starts falling, fixed rates have often already adjusted.
The question isn't 'is the market falling?' It's 'is my current lender staying competitive?' We compare your rate against the sharpest rates on the market each quarter. If the gap is more than 30 basis points, refinancing usually makes sense after accounting for fees.
Refinancing costs are typically $800–$1,500 between discharge, application, and new lender fees. Over a 30-year loan, even a 0.25% rate drop saves many times that. The math tends to favour moving, but timing and total cost matter.
If you're thinking about refinancing, the smart move is to check your current lender's retention offer first. Sometimes a quick call to their retention team secures the same rate cut — without any of the paperwork of switching.