Competition between home loan lenders appears to be increasing as demand for new mortgages slows. For some borrowers, this may create an opportunity to review whether their current home loan rate and features are still competitive.

The Reserve Bank of Australia held the cash rate at 4.35 per cent at its August 2026 meeting, following three increases earlier this year. With inflation still too high and further rate increases remaining possible, borrowers do not necessarily need to wait for interest rates to fall before reviewing their options.

Competition Is Beginning to Increase

Recent market data shows the number of lenders offering at least one variable home loan rate below 6 per cent has increased by 11 since the start of June.

This suggests competition for borrowers is strengthening as demand for new home loans has softened. While this does not yet signal a widespread mortgage price war, borrowers may have more opportunities to compare rates and loan features.

Could Refinancing Reduce Your Loan Costs?

Refinancing to a lower interest rate may reduce repayments and the amount of interest paid over time, particularly where there is a meaningful difference between the existing and new rate.

However, a lower advertised rate does not automatically mean refinancing will provide a financial benefit. The potential savings will depend on factors including the outstanding loan balance, current interest rate, remaining loan term and the costs involved in switching.

Consider the Full Cost of Changing Loans

Before refinancing, borrowers should consider discharge and application fees, ongoing fees, comparison rates and whether the new loan offers suitable features.

Equity can also affect the products and rates available. Borrowers with a lower loan-to-value ratio may have access to a wider range of competitive options.

Is It Time to Review Your Home Loan?

With lender competition increasing and interest rates remaining uncertain, reviewing an existing home loan may help borrowers understand whether their current arrangement still suits their circumstances.

Comparing the overall cost, features and suitability of available options can help determine whether your current loan remains competitive and whether refinancing is worthwhile.