Same Loan, Higher Rate? Why Now Is a Smart Time to Review

If you haven’t looked at your home loan recently, there’s a reasonable chance it’s no longer as competitive as it could be and in the current environment, that’s worth fixing.

The Reserve Bank of Australia has raised the cash rate three times in 2026, bringing it back to 4.35%. For most borrowers, that has meant higher monthly repayments. What many people don’t realise, however, is that while the official cash rate has been rising, competition between lenders has been quietly moving in borrowers’ favour.

Lenders Are Competing for New Business

Since the most recent RBA increase in May, more than a dozen lenders, including well-known banks and credit unions, have reduced variable rates on at least some of their products. This isn’t driven by RBA policy; it’s driven by competition. Lenders are actively seeking new borrowers, and in doing so are offering more attractive terms to win that business.

The result is a two-speed mortgage market. Borrowers who actively review their loans can access more competitive terms. Meanwhile, those who haven’t revisited their lending in some time may find themselves stuck on legacy pricing, or “back book” rates, which no longer reflect current market options.

What Is Worth Reviewing?

Whether you hold a home loan, an investment property loan, or both, a regular review is simply good financial practice. Some key questions to consider:

• Is your current interest rate in line with what comparable lenders are offering today?
• Does your loan structure, fixed, variable, or split, still suit your current circumstances and outlook?
• Are you making full use of offset or redraw facilities available under your loan?
• Could consolidating or restructuring your lending improve your overall cash flow position?

Getting an Independent Assessment

Comparing home loans isn’t simply a matter of looking at rate tables online. A meaningful assessment considers your full financial picture, including your income, your equity, your objectives, and your timeline, and matches that to the most suitable lender and product available to you.

As an NMB-accredited mortgage broking practice, PPT Financial has access to a broad panel of lenders, including major banks, regional lenders, and specialist providers. We work on your behalf to identify options that suit your circumstances, and we’re across what is currently moving in the lending market.

If you haven’t had your home loan reviewed in the past 12 months, now is a sensible time to do so.

Want to know if your home loan is still working for you?
Contact Ben McDonald, Lending Manager, on (03) 5331 3711 to arrange a complimentary review.

DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.