As an award-winning mortgage broker based in Perth, I’ve been fielding lots of questions lately from clients wondering if now is the right time to refinance their home loans. With speculation abounding that the RBA is poised to cut interest rates this week, it’s an important moment to consider your options — but also to understand the broader picture and your long term goals.
If you’re thinking about refinancing in Perth, this article will walk you through what’s going on with interest rates, why now could be the right time to act, and how to get started — easily and with expert support.
Will the RBA Cut Interest Rates?
According to The Australian Financial Review, and a plethora of economists, the RBA is expected to announce a rate cut this Tuesday, marking a significant shift in its policy stance. However, the tone has changed.
While a rate cut this week is likely, ongoing cuts are no longer a sure thing. In fact, with sticky inflation and a global shift toward trade protectionism — including rising tariffs and energy costs — there is now a possibility that rate hikes could return to the table later in the year. That’s not something many of us had on our bingo card.
So what does this mean for you as a homeowner in Perth?
In short: This could be your window of opportunity.
What are the major banks predicting?
CBA, Westpac, NAB and ANZ all expect the RBA will cut the cash rate on Tuesday.
They then expect between three and five more cuts in this cycle.
Here’s what they are forecasting:
CBA – Three cuts in May, August and November to bring end of year cash rate to 3.35 per cent
Westpac – Three cuts in May, August and November to bring cash rate to 3.35 per cent
NAB – Five cuts in May (50 basis points), July, August, November, and February to take cash rate to 2.60 per cent
ANZ – Three cuts in May, August and the first quarter of 2026 to bring cash rate to 3.35 per cent
On Friday, ANZ updated its forecast for future OCR cuts.
While the bank is still anticipating a reduction of 25 basis points at the May 19-20 meeting, ANZ economists said “there is less urgency to ease over coming months.”
The bank had previously predicted the RBA would cut rates at its May, July and August meetings. Now ANZ is anticipating rate cuts in May and August, as well as one in early 2026 thanks to continued global uncertainty.
How much will I save if the RBA cuts interest rates?
A 25 basis point cut would save the average borrower $91 on their monthly repayments based on a $600,000 loan with 25 years remaining, according to Canstar.
Three cuts would result in a $268 drop in repayments.
A 50 basis point cut would double this and save the average borrower $181 on their monthly repayments.
If NAB’s prediction is correct and there is a 1.50 per cent drop to mortgage rates by March 2026, this would lower repayments by $526 a month based on that $600,000 loan.
Why Refinancing Now Makes Sense
If you’re paying more than 6% on your current mortgage, you could be overpaying — by thousands each year. And while the RBA’s rate cut may lower some standard variable rates slightly, the best deals are often reserved for new customers.
That’s why refinancing can be a smart move. Lenders are fiercely competing for market share, and many are offering sharper deals to refinancers than to loyal existing customers.
Economic Context: Why the Window Might Be Brief
Domestic inflation is still high, and core inflation measures remain above the RBA’s comfort zone.
Global tariffs and trade tensions — particularly between major economies — are driving up input costs.
Consumer confidence is weak, but wage growth and low unemployment keep pressure on inflation.
All of these factors mean that this rate cut may not be the start of a long cutting cycle. The RBA may need to reverse course quickly if inflation re-accelerates.
The Easy Step-by-Step Refinancing Process
Don’t be put off by the idea of paperwork. With the right guidance, refinancing your home loan in Perth can be simple and hassle-free. At Base Home Loans, our whole point of existence is to make it easy for you.
Here’s how it works:
1. Review Your Current Loan
Start by looking at your existing interest rate, repayments, and remaining loan term.
2. Set Your Goal
Are you looking to lower repayments, shorten your loan term, or access equity for renovations or investments?
3. Get Your Documents Ready
Typically, you’ll need:
- Recent payslips and tax returns
- Loan statements
- Identification and expenses summary
4. Book a Free Strategy Call
This is where we come in. As your local mortgage broker in Perth, we assess your financial position and goals, then shortlist the best lender offers for you.
5. We Do the Legwork
We submit the application, liaise with the lender, and ensure your refinance settles smoothly — often in just a few weeks, and in some cases less.
Why Use a Mortgage Broker to Refinance?
In Australia, around 60% of all home loans are arranged through mortgage brokers, and that number is even higher when it comes to refinancing. Here’s why:
- We compare loans from dozens of lenders, not just the Big Four. Find out more about Alternative Lenders here.
- We negotiate on your behalf, leveraging relationships and lender incentives.
- We are literally bound by something called Best Interest Duty, meaning we HAVE to act in your best interests, not in the best interest of our bottom line.
- We don’t charge you a fee — we’re paid by the lender once your loan settles.
Basically, if you’re thinking about refinancing in Perth, working with a mortgage broker gives you access to more options, better rates, and expert support.
If I Refinance Now, Will I Miss Out on Future Rate Cuts?
Not necessarily — and in many cases, refinancing now puts you in a better position to benefit from future cuts. Most home loans in Australia are on variable interest rates, which means if rates drop again, your repayments will likely decrease automatically — even after you’ve refinanced. By locking in a more competitive rate today, you’re already improving your financial position. And if further cuts come, you’ll be better off than if you had stayed with a higher-rate loan.
Plus, if you’re considering a fixed rate, your mortgage broker can help you structure your loan to include a split loan — part fixed, part variable — so you can enjoy some security now while still retaining flexibility for future rate movements.
the best time to refinance is now
With a rate cut almost certain this week but uncertainty ahead, now is a key time to take stock of your mortgage. Whether you’re on a variable rate or a fixed term ending soon, refinancing could be a great option to move closer to your financial goals, that next property, an overseas holiday or whatever else you have planned to move you closer to financial freedom.
Refinancing doesn’t have to be hard. With our expert team right here in Perth, we make the process easy and effective.
Ready to Get Started?
If you’d like personalised advice or want to see how much you could save, book a free refinancing review with an experienced mortgage broker. We’ll run the numbers and walk you through your best options — no pressure, no obligation.
Contact your local mortgage broker in Perth now or
Book a discovery call right now
Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions.
