Refinancing tips date fast. The tips that made sense in 2024 were written when everyone expected rates to keep falling; instead the RBA has hiked three times in 2026 and the cash rate sits at 4.35%. So here are the refinancing tips that actually matter right now, in the market we are in, not the one we wish we had.

Thinking about refinancing? Send your current rate and balance to startnow@sorenfinancial.com and we will tell you inside a day whether a move is worth it.

Tip 1: Know what a good rate looks like in 2026

Variable rates for owner occupiers are sitting around the high 5s to low 6s at the time of writing, and unusually, some lenders are pricing 2-year fixed rates below their variable. If your current rate starts with a 6 and change, you are paying a loyalty tax. The chart above shows why even 0.20% matters: on a $600k loan it is roughly $1,200 a year.

Tip 2: Of all the refinancing tips, this is the money one – the term, not just the rate

The biggest money in refinancing is not the rate, it is the term. If you are 4 years into a 30-year loan and you refinance into a fresh 30 years, you just handed the bank 4 extra years of interest. Keep your remaining term (or shorten it) and the saving compounds. We covered the full maths in our refinancing guide, where cutting just 2 years off a term saved a client tens of thousands.

Tip 3: Don’t let a cashback pick your lender

A handful of lenders still pay refinance cashbacks in 2026, and if the loan is right anyway, take the money. But a cashback attached to the wrong rate is fully eaten in under three years. We keep a current list in our home loan cashback offers guide.

Tip 4: Check where rates are heading before you fix

Heading into the 11 August RBA meeting, the OurTop10 Rate Prediction Index puts a 77.7% chance on a hold, 22.3% on another hike and 0% on a cut. If you are refinancing to fix, that backdrop matters — we walked through the fix-or-stay-variable decision in this post.

Tip 5: Your borrowing capacity is not what it was

Every 2026 hike trimmed roughly 2% off maximum borrowing capacity, and lenders will re-run your whole file when you refinance — income, debts, living expenses, all tested at your new rate plus APRA’s 3% buffer. If your position has tightened since you last borrowed, find out before you apply, not after a lender knocks you back and leaves an enquiry on your file. Our calculators are a good first pass.

Moral of the story: refinancing in 2026 is less about chasing the lowest headline rate and more about structure, term and timing. Get in touch at startnow@sorenfinancial.com and we will run the whole picture for you — you can read our client reviews on OurTop10.