Research outlines potential annual savings for borrowers who switch to lower-rate home loans
Homeowners who refinance to sharper interest rates in 2026 could cut thousands of dollars from their annual repayments, new research from Canstar.com.au suggests.
Modelling by the comparison site indicates that a borrower with a $600,000 owner‑occupier loan and 25 years remaining could save about $1,965 over 12 months by moving from the average rate to one of the lowest offers in the market.
This home loan saving represents a significant share of the broader $7,750 in potential yearly household savings identified in Canstar’s study, which also covers groceries, insurance, utilities and telecommunications.
Source: Canstar.com.au
The findings come as the possibility of a cash rate increase remains in view and mortgage holders continue to manage elevated repayment and living‑cost pressures. For brokers and other mortgage professionals, the research underscores the financial impact of reviewing existing clients’ loans against current market pricing, particularly where borrowers remain on average or above‑average rates.
Canstar’s analysis is based on an “average” family of four that switches key household products to lower‑priced options, including home loans, electricity, gas, mobile plans, internet, private hospital cover and general insurance. While the total theoretical saving across all categories is $7,750, the home loan component is one of the largest line items and typically the most material lever for mortgage customers.
“The start of a new year is a great time to reflect on your finances and make the changes that will set you up for the 12 months ahead.” said Sally Tindall (pictured right), data insights director at Canstar.com.au. “Review your major expenses, compare what you’re paying against what else is on offer in the market and if there’s savings to be had, make the switch.
“Haggling with your current provider is also another way to get a discount, and you’d be surprised how willing some are when the threat of losing a customer becomes a reality.
“While this is a great task for the start of 2026, it’s also good to put reminders in throughout the year to make sure you’re still on a competitive rate and getting the best value for your money.”
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