Almost half a million dollars worth of home loans refinanced every minute
13 Nov 2025
A record $65.8 billion worth of mortgages switched to a different lender in the September 2025 quarter, according to new ABS data.
Our analysis shows this equates to almost half a million dollars worth of mortgages refinanced every minute.
The latest ABS Lending Indicators, released yesterday, shows refinancing activity jumped by $3 billion compared with the June quarter. The surge follows the RBA cash rate cuts in February, May and August, which are likely to have encouraged borrowers to reassess their loans in search of better rates and savings.
An estimated 1.4 million mortgages have been refinanced since the start of the hikes in May 2022, in seasonally adjusted terms. However, this includes some borrowers who have potentially refinanced more than once, as well as some borrowers with more than one loan.
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| Total number and value of externally refinanced mortgages | ||||
|---|---|---|---|---|
| Amount (Sept 25 qtr) | Change since previous quarter | Year-on-year change | Total since start of the hikes | |
| Number | 104,354 | +2,946
+2.9% |
+16,253
+18.4% |
1.4 million |
| Value | $65.8 billion
Highest on record |
+$3.0 billion
+4.8% |
$13.2 billion
+25.2% |
$778.6 billion |
Source: ABS Lending Indicators September 2025, prepared by Canstar.com.au. Notes: number and value of refinanced loans includes owner-occupier and investor loans, seasonally adjusted data. Total since the start of the hikes is an estimation from May 2022 to September 2025 inclusive.
How much can a typical borrower save by refinancing?
Research shows an owner-occupier who hasn’t renegotiated their mortgage in the last few years is on an average variable rate of 6.36%.
By switching to a highly competitive rate of 5.25% or below, a borrower with a $600,000 loan could potentially save more than $12,000 in the next two years, even when factoring in $1,150 in switch costs.
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| Potential impact of refinancing – $600k loan, 25 years remaining | |||
|---|---|---|---|
| Advertised rate | Monthly repayments | Cost – next 2 years | |
| Complacent borrower | 6.36% | $3,999 | $75,074 |
| Refinance to competitive rate | 5.25% | $3,595 | $62,940 |
| Difference | -1.11% | -$403 | -$12,135 |
Source: Canstar. Notes: calculations are based on an owner occupier with a $600k debt and 25 years remaining. The complacent variable borrower rate assumes the person has not renegotiated their rate since May 2022. Costs include $1,150 in switch costs but not ongoing fees and that variable rates change in line with CBA’s current cash rate forecast. Numbers are rounded to the nearest dollar.
New lending lifts in the September quarter
The total value of new housing loans has increased to $98 billion in the September quarter, according to the latest ABS Lending Indicator data, in seasonally adjusted terms.
The biggest rise in percentage terms for the quarter was investors at a 17.6% increase, followed by upgraders (+6.2%), then first home buyers (+1.1%).
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| Value of new lending in September quarter 2025 | |||
|---|---|---|---|
| Loan type | Value of loans | Quarterly change | Annual change |
| All loans | $98.0 billion
Record high |
+9.6% | +13.2% |
| Owner-occupied (ex FHB) | $42.5 billion | +6.2% | +12.7% |
| First home buyers (owner-occ) | $16.5 billion | +1.1% | +4.6% |
| Investment | $39.8 billion
Record high |
+17.6% | +18.7% |
Source: ABS Lending Indicators September 2025, prepared by Canstar.com.au. Value of new loan commitments based on seasonally adjusted figures.
Average new loan size hits a new record high
The average new loan size for owner-occupiers has hit a record high of $694,000, according to the ABS data. This was an increase of $16,000 between the June and September quarters, likely fuelled by the three RBA cash rate cuts. That’s an estimated increase of $174 a day.
NSW has the largest average new loan size for owner-occupiers at $828,000 – a new record for the state, after a rise of $13,000 between the June and September quarters.
Queensland hit a record high of $687,000, recording the biggest growth out of the states and territories in both percentage and dollar terms, with an increase of $25,000 or 4% in just one quarter.
Other states hitting record-high average new loan sizes were Victoria, South Australia and Western Australia. All data is in original terms and rounded to the nearest $1,000.
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| Average new owner-occupier loan size | |||
|---|---|---|---|
| Loan size | Quarterly change | Annual change | |
| Australia | $694,000 – record high | 2% | 8% |
| NSW | $828,000 – record high | 2% | 6% |
| VIC | $647,000 – record high | 1% | 5% |
| QLD | $687,000 – record high | 4% | 13% |
| SA | $616,000 – record high | 3% | 11% |
| WA | $633,000 – record high | 2% | 13% |
| TAS | $484,000 | 0% | 6% |
| NT | $481,000 | -1% | 11% |
| ACT | $628,000 | -1% | 2% |
Source: ABS Lending Indicators June 2025, prepared by Canstar.com.au. Average loan size based on original terms for owner-occupier dwellings, excludes refinancing and is rounded to the nearest $1,000.
Canstar’s spokesperson, Laine Gordon says, “Almost half a million dollars in loans being refinanced to a new lender every minute is a jaw-dropping figure. 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.
“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. 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.”
This article was reviewed by our Consumer Editor Meagan Lawrence before it was updated, as part of our fact-checking process.
