Refinancing Hits Record High

Homeowners trying to reduce costs have sent refinancing levels to record highs.

New data from Loan Market Group shows that 57% of lodgements in the last two weeks of September are for refinancing, with borrowers seeking cheaper rates.

It says refinancing has climbed steadily as a share of lodgements since the RBA started increasing interest rates from February.

Analysis from Finder shows 14% of mortgage holders plan to refinance in the next 12 months.

The number of buyers applying for new loans is down most significantly in Queensland (30%) followed by New South Wales (29%), South Australia (26%) and Victoria (20%).

At the same time, new lending levels are falling – particularly among investors.

Investor demand for existing homes, which can no longer claim negative gearing if purchased after May 2026, has dropped by 56%.

Property Investment Professionals of Australia chair Cate Bakos says the latest lending figures confirm what investors told the association’s 2026 Annual Investor Sentiment Survey, that 21.5% are unlikely to buy again unless the Federal Tax changes are repealed.