Perth’s fast-moving property market: when does refinancing actually make sense?

With the RBA increasing rates again last week, a lot of Perth homeowners are asking the same question: “Should I be doing something about my loan?”

When rates move the noise increases, news headlines spike, social media fills with opinions and naturally, people start reviewing their mortgage.

But refinancing isn’t always the automatic answer.

In a fast-moving property market like Perth’s, sometimes the smartest move isn’t reacting — it’s reviewing your position calmly and understanding what actually makes sense.

Why rate rises trigger refinancing conversations

When interest rates increase, three things usually happen:

• repayment pressure rises

• fixed rates expire into higher variable rates

• homeowners start comparing their rate to what others are paying

That doesn’t mean everyone should refinance. It does mean everyone should understand where they stand.

As property values have risen across Perth in recent years, many homeowners are sitting on more equity than they realise.

When refinancing actually makes sense

Refinancing tends to make sense when:

• your rate is clearly uncompetitive

• your loan structure no longer suits your goals

• you want to consolidate debt• you’re accessing equity for a strategic reason

• your fixed rate has expired and alternatives exist

In these cases refinancing isn’t reactive, It’s structured, It’s about repositioning, not panicking.

Real-world example: refinancing doesn’t always mean “just lower the rate”

In the past month, I’ve helped two clients refinance. Interestingly, both chose to increase their loan slightly at the same time. Not because they had to, but because they were already considering improvements like solar, landscaping, or a kitchen upgrade.

Their thinking was simple: “If we’re reassessing our loan anyway, let’s structure it properly and include the improvements we were planning.” This isn’t about borrowing more for the sake of it. It’s about using a refinancing review as an opportunity to tidy up structure and plan properly.

For some homeowners, that makes sense, for others, it doesn’t. The key is understanding the numbers before making assumptions.

When refinancing doesn’t make sense

This is important, refinancing isn’t always the right move, in many cases:

• your current rate is already competitive

• switching costs outweigh the benefit

• your structure is working well

• or a simple rate review achieves the outcome

Sometimes the smartest move isn’t changing lenders at all, a structured rate review with your current bank can often result in an improved rate without the need for a full application, and sometimes after reviewing everything, the right answer is simply: “Stay put!.”

That’s still a good outcome.

The middle ground: reviewing without rushing

There’s a difference between reacting and reviewing.

Reviewing means:

• checking your current rate

• comparing realistically

• understanding equity

• knowing your options

Reacting means:

• switching lenders because of a headline

• chasing the lowest advertised rate

• making changes without structure

In a fast-moving market, clarity matters more than speed.

For some homeowners, reviewing their position also opens up broader conversations around investing or restructuring.

If you’re unsure whether your current rate is competitive, now could be a good time for a short, structure conversation. Not to commit to refinancing, but to understand whether a rate review, restructure, or no change at all makes sense.

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Why timing matters right now

After an RBA move, lenders adjust at different speeds, some move immediately, some lag, some quietly adjust policy rather than rate. That creates opportunity for review, but not necessarily urgency to switch, and as Perth’s property market continues evolving, refinancing decisions should sit within your broader plan, not outside it.

What to focus on next

If rates rising has made you question your loan, here’s a sensible approach:

• check what rate you’re actually paying

• understand how it compares

• confirm whether a rate review is possible

• explore refinancing only if it improves your position

• avoid reacting purely to headlines

You don’t have to refinance.

You don’t have to switch lenders.

But you should understand your options.

And if you want to talk it through, now’s a good time to have a chat with your home loan guy and see what makes sense from where you’re standing.