Short answer: On a $600,000 loan with 25 years left, moving from the rate a long-standing customer is likely to be on after this hike to one of the lowest variable rates Canstar is tracking could cut repayments from about $4,372 to $3,932 a month on this example. That's around $440 a month, or about $131,000 over the rest of the loan if rates stayed the same, after roughly $1,150 in switching costs. Worth a look, but not for everyone.
The Reserve Bank lifted the cash rate for the fifth time this year on 3 November 2026, to 4.85%. We ran the numbers on a typical loan to see what refinancing could win back, and when it doesn't work.
The borrower
Took out their loan five years ago and never asked for a better rate
Owes $600,000 with 25 years left
Home worth $900,000, so they owe about 67% of its value (no lenders mortgage insurance)
The numbers
Repayments now: about $4,372 a month
At a sharper rate: about $3,932 a month
Difference: around $440 a month, or about $5,275 a year
Switching costs of about $1,150 are covered in roughly three months
Over the remaining 25 years: about $131,000, if both rates stayed the same
The catches
Switching usually costs a bit over $1,000 in fees. If you move to an eligible greener lender, we may cover those costs. Conditions apply.
Owe more than 80% of your home's value and you may have to pay lenders mortgage insurance.
Break a fixed rate early and there can be break costs.
The new lender checks you could still afford repayments at your rate plus 3%. With rates this high, some people no longer pass.
Can't refinance? Three things to try
Ask your current bank for a better rate, and mention you're thinking of leaving. Many will sharpen up.
Some lenders assess a like-for-like refinance at just 1% above your rate instead of 3%. This usually needs no missed repayments in the last 12 months and a new repayment no higher than your current one.
If you're struggling, call your lender early. You can ask for lower or paused repayments for a while.
What it means for you
Refinancing is worth a look after five hikes, but it isn't right for everyone. We compare 75+ lenders and tell you honestly whether switching is worth it. Save this for when your bank's rate letter arrives, and book a chat when you're ready.
Illustrative estimate based on the scenario in the video, not an offer of credit. Repayment figures are based on Canstar estimates following the RBA decision of 3 November 2026; actual rates depend on the lender, loan and your circumstances. General information only; it does not consider your objectives, financial situation or needs. Subject to eligibility and lender credit criteria. Fees and charges apply. Switching costs covered only on suitable loans refinanced to an eligible environmentally friendly lender; not available when moving from one green lender to another. Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.