Should You Refinance in 2026? A Perth Homeowner’s Guide
If you’re a homeowner in Western Australia, 2026 is a crucial year for mortgage commitment. Interest rates have stabilised after years of volatility, property values across Perth have continued to rise, and lenders are competing harder than ever for quality borrowers.
Which this begs the question for many households: should you refinance your home loan in 2026?
This guide will walk you through on what refinancing means, the key signs it might be time to act, and why the Perth market creates opportunities for homeowners considering a refinance home loan in Perth.
Why 2026 Is a Key Year for Perth Homeowners
After several years of rate rises and the uncertainty in the economy, many Perth homeowners are now coming off fixed-rate periods or reassessing loans taken out under very different conditions.
At the same time:
- Perth property values have grown strongly, boosting homeowner equity
- Lenders are actively pricing loans to win refinances
- Many borrowers are still sitting on higher-than-necessary interest rates
These factors make 2026 an ideal time to review whether your current loan still works for you or whether a home loan refinance in Perth could deliver better value.
What is Refinancing?
Refinancing simply means replacing your current home loan with a new one, either with your existing lender or a new lender. Typically, people refinance the home loan to:
- Secure a lower interest rate for the home loan
- Reduce monthly repayments
- Access equity
- Consolidate debts
- Improve loan features and flexibility
If you’re new to the process, you can explore a step-by-step explanation in our home loan refinancing guide.
5 Signs It Might Be Time to Refinance Your Mortgage
1. Your Interest Rate Is No Longer Competitive
One of the most common reasons homeowners choose to refinance mortgage options in Perth is due to the interest rate. If your loan was written several years ago, there’s a high chance newer borrowers are getting better rates than you. Even a small rate gap can translate into thousands of dollars saved over the life of the loan.
2. Your Life Situation Has Changed
Major life events often mean your loan needs to change too. This usually happened when:
- Growing or shrinking family
- Career change or income increase
- Moving from dual income to single income
- Planning renovations or upgrades
Refinancing allows your loan to better match your current priorities and not the ones you had years ago.
3. Your Home Has Grown in Value
Perth’s property market has delivered solid growth across many suburbs. If your home value has increased, you may now have significantly more equity than when you first bought.
This can provide:
- Lower interest rates
- The equity for renovations or investments access
- The ability to remove or avoid lender’s mortgage insurance (LMI)
Equity growth is a major driver behind switching home loans in Perth.
4. Your Loan Features No Longer Suit You
Older loans often lack features that many homeowners now expect, such as:
- Offset accounts
- Flexible repayment options
- Redraw facilities
- Better digital banking tools
Refinancing can modernise your loan without changing your home, often with immediate lifestyle and cash-flow benefits.
5. You Want to Consolidate Your Debt
Refinancing can allow you to roll higher-interest debts into your home loan at a lower rate, especially if you’re managing credit cards, personal loads or car finances.
This debt consolidation through a home loan refinance can simplify finances and reduce the interest costs when it is structured and done carefully.
The Perth Factor: Why WA Homeowners Are Well Positioned
Homeowners in Perth have some advantages when it comes to refinancing in 2026.
Strong Equity Positions
Compared to the eastern states, Perth’s price growth has been more recent, meaning many homeowners now sit in stronger equity positions than expected, which usually leads to:
- Better borrowing power
- More competitive refinance offers
- Lower perceived risk by lenders
A Competitive WA Lending Market
Lenders are actively targeting Western Australian borrowers, especially those with stable employment and solid equity.
That competition creates leverage but only if you know where to look.
Costs to Consider When Refinancing
Refinancing isn’t free, so it’s important to understand the costs involved and compare them with the potential savings.
Common costs include:
- Discharge or exit fees
- Loan establishment fees
- Government registration fees
- Possible break fees (if exiting a fixed loan early)
A general rule of thumb:
If the savings exceed the costs within a reasonable timeframe, refinancing is usually worth considering.
This is where the guidance from the professionals makes a big difference.
How a Mortgage Broker Helps You Refinance Smarter
A broker doesn’t just find a rate, but they manage the entire refinance strategy.
A good broker can:
- Compare 30+ lenders instead of one
- Negotiate sharper rates and better terms
- Handle paperwork, valuations, and lender communication
- Structure loans to suit your future goals
For many homeowners, working with a broker removes the stress and uncertainty while improving the outcome when switching home loans in Perth
Book a Refinance Review
Not sure where you stand?
A refinance review can show you:
- Whether you’re paying too much
- What options are available in the current market
- How much you could save without obligation
Book a mortgage refinance review with one of our brokers today and see whether refinancing your home loan in Perth makes sense for 2026 and beyond.
