$500,000 in mortgages being refinanced every minute

A record $65.8 billion in home loans changed lenders during the September 2025 quarter, equating to nearly $500,000 in mortgages being refinanced every minute, analysis of Australian Bureau of Statistics (ABS) data has revealed.

The ABS Lending Indicators, released earlier this week, show refinancing volumes rose by $3 billion compared to the June quarter. The increase follows Reserve Bank of Australia (RBA) cash rate reductions in February, May, and August, which appear to have prompted many borrowers to review their home loan arrangements.

Since the beginning of the rate rises in May 2022, approximately 1.4 million mortgages have been refinanced on a seasonally adjusted basis. This figure may include borrowers who have refinanced more than once or hold multiple loans.

Canstar.com.au’s analysis of the data suggests that owner-occupiers who have not renegotiated their mortgage in recent years are typically paying an average variable rate of 6.36%. By switching to a rate of 5.25% or lower, a borrower with a $600,000 loan could save over $12,000 across two years, even after accounting for $1,150 in switching costs.

“Almost half a million dollars in loans being refinanced to a new lender every minute is a jaw-dropping figure,” said Laine Gordon (pictured right), spokesperson at Canstar.com.au. “It shows Australian borrowers are laser-focused on cutting their mortgage costs where they can. Recent rate cuts have clearly prompted borrowers to give their mortgage a much-needed health check.

“For some households, refinancing isn’t just about shaving a few percentage points off the rate, it can be a lifeline. A lower rate can ease the monthly pressure and, over time, potentially save thousands in interest.”

Meanwhile, the ABS figures also showed an increase in the value of new housing loans, reaching $98 billion in the September quarter. Investor lending saw the largest quarterly growth at 17.6%, followed by upgraders at 6.2%, and first home buyers at 1.1%.

The average new loan size for owner-occupiers climbed to a record $694,000, up $16,000 from the previous quarter. This rise is likely linked to the three recent RBA rate cuts, representing an increase of about $174 per day.

New South Wales recorded the highest average new loan size at $828,000, a $13,000 increase over the quarter. Queensland also reached a record, with the average rising by $25,000, or 4%, to $687,000. Victoria, South Australia, and Western Australia also reported record-high average new loan sizes.

“Record levels of new lending shows buyers are back in force, but with new loan sizes also reaching a peak, some are taking on bigger debts to secure the winning bid on their future home,” Gordon said. “It’s a reminder that rate cuts can be a double-edged sword.

“Before you take out a loan, stress test your budget. Ask yourself if you could still manage the repayments if rates climbed by three percentage points. While that may seem unlikely today, a lot can change over the life of a 30-year mortgage.”

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