Realestate.com.au
NEARLY half a million Australian mortgage holders are preparing to switch lenders as rising interest rates squeeze household budgets and leave more than one in three borrowers struggling to meet their repayments.
New research from comparison website Finder reveals 14 per cent of mortgage holders, equivalent to approximately 462,000 Australians, intend to refinance their home loans with a different lender over the next 12 months.
The findings come after the Reserve Bank of Australia lifted the official cash rate to 4.6 per cent in September, its fourth increase of 2026 and the highest level in 15 years.
With mortgage repayments consuming an increasing share of household incomes, borrowers are searching for ways to reduce costs and secure more competitive interest rates.
Finder’s research also found 9 per cent of borrowers had already refinanced with another lender during the previous year, meaning almost one in four mortgage holders had either recently switched or were planning to do so.
Finder money and home loans expert Richard Whitten said the latest interest rate increase had intensified financial pressure on households.
“The latest cash rate hike has put even more pressure on household budgets, so it’s no surprise mortgage holders are looking for ways to ease the strain,” Mr Whitten said.
“Borrowers are increasingly willing to shop around when their current loan no longer stacks up.
“Your home loan is one of the biggest expenses, so even a small improvement in your rate or fees can make a meaningful difference over time.”
According to Finder, reducing the interest rate on a $500,000 mortgage over 30 years by just half a percentage point could save more than $58,000 across the life of the loan, depending on the loan terms.
Finder’s Consumer Sentiment Tracker found 34 per cent of mortgage holders reported struggling to pay their home loans in September.
Despite the financial pressure, almost half of borrowers remain reluctant to switch lenders.
The survey found 48 per cent had no plans to refinance, while another 20 per cent had considered changing lenders but had not acted.
Mr Whitten said homeowners should regularly review their mortgage arrangements rather than assume their existing lender was offering the best available deal.
“If your repayments are starting to bite, now is a good time to find out whether your current lender is still giving you a competitive deal.” he said.
