A Perth Borrower’s Guide After the Latest RBA Rate Rise

The latest RBA cash rate announcement has once again sparked the same question across Perth households:

Should I refinance, fix my interest rate, or just stay where I am?

For many borrowers, the constant headlines around interest rates, inflation and the property market can create a feeling that you always need to be doing something with your mortgage.But the reality is this:

At Base Home Loans, we believe the best lending strategy is not based on panic, media spin or chasing the lowest advertised rate. It is based on creating a loan structure that aligns with your budget, lifestyle, future plans and long-term financial goals.

Here’s what Perth borrowers should be thinking about right now.

What Changed With the Latest RBA Rate Rise?

The Reserve Bank of Australia has increased the cash rate again, with many lenders either already passing on increases or adjusting their pricing and policies in anticipation.

For borrowers, this means:

• Higher monthly repayments for variable rate loans
• Increased pressure on household cash flow
• More scrutiny around borrowing capacity
• Greater interest in refinancing and fixed rates
• More borrowers wanting certainty and stability

At the same time, Perth’s property market remains competitive.

Many buyers are still facing strong demand, limited stock in quality suburbs, and continued price growth in key areas across Perth.

This combination of higher rates and rising property prices has left many borrowers feeling uncertain about their next move.

That’s why strategy matters more than ever.

The Biggest Mistake Borrowers Are Making Right Now

The biggest mistake we are seeing is borrowers making decisions based purely on fear or headlines.

For example:

• Fixing a rate without considering future flexibility
• Refinancing solely for a lower rate without understanding fees or loan structure
• Staying with a lender out of convenience while paying significantly more than necessary
• Focusing only on repayments instead of long-term debt reduction
• Choosing a loan product that no longer aligns with lifestyle changes

A mortgage should not just be something you “set and forget”. It should evolve with your life.

The right strategy for a first home buyer with young children will likely look very different to an investor building a portfolio, a family upgrading homes, or someone focused on paying down debt aggressively.

That’s why a proper home loan review involves far more than simply comparing interest rates online.

When Refinancing May Make Sense

Refinancing can be a powerful financial tool when used strategically.

For some borrowers, refinancing may help:

• Reduce repayments
• Access a more competitive interest rate
• Consolidate higher-interest debts
• Improve cash flow
• Release equity for renovations or investment
• Move from a loan structure that no longer suits their needs
• Access offset accounts or features their current lender does not provide
• Shorten the life of the mortgage through better structuring

In the current environment, we are seeing many Perth borrowers refinance because:

• Their fixed rate is ending
• Their lender has increased rates significantly
• Their circumstances have changed since originally taking out the loan
• They have built substantial equity through Perth property growth
• Cost of living pressures are starting to bite

However, refinancing is not always automatically beneficial.

A lower rate does not necessarily mean a better outcome.

Borrowers also need to consider:

• Break costs
• Refinancing fees
• Loan features
• Borrowing capacity changes
• Cash flow goals
• Future plans
• Whether they may sell or upgrade in the near future

Sometimes a lender retention negotiation can achieve a strong outcome without switching lenders entirely.

Other times, a complete restructure may significantly improve the borrower’s long-term position.

Should You Fix Your Interest Rate in 2026?

This is one of the most common questions borrowers are asking right now.

The answer depends less on “where rates are going” and more on your personal financial situation.

A fixed rate can provide:

• Repayment certainty
• Stability for household budgeting
• Reduced stress around future rate rises
• Confidence during periods of economic uncertainty

For some households, this certainty is extremely valuable.

Particularly for:

• Young families managing childcare costs
• Borrowers on tight budgets
• Clients wanting predictable expenses
• People concerned about future rate volatility

However, fixing also comes with trade-offs.

Depending on the lender and product, fixed loans may reduce:

• Flexibility
• Extra repayment options
• Offset account functionality
• Ability to refinance easily
• Ability to sell or restructure without costs

Many borrowers also assume fixing means they are “beating the system” or locking in the cheapest possible outcome.

But fixed rates are ultimately priced around lender expectations and market conditions.

In some cases, fixing can actually result in paying more over time if rates fall sooner than expected.

This is why we always encourage borrowers to think beyond predictions.

The better question is:

Would fixing improve your peace of mind and help you manage your budget more effectively?

If the answer is yes, it may be worth considering.

When Staying Put May Actually Be the Best Option

Sometimes the best strategy is simply making your current loan work harder.

Not every borrower needs to refinance immediately.

In some cases, staying with your current lender may make sense if:

• Your rate is still competitive
• Your loan features suit your needs
• The costs of refinancing outweigh the benefits
• You plan to sell soon
• You are prioritising stability and simplicity
• Your lender is willing to negotiate pricing

We often see borrowers assume they are “behind” if they are not constantly switching lenders.

That is not necessarily true.

A good lending strategy is not about constantly chasing the lowest possible rate.

It is about creating a sustainable structure that supports your broader financial life.

For some borrowers, this may involve:

• Keeping repayments higher than the minimum
• Building buffers in offset accounts
• Using redraw strategically
• Paying down debt faster
• Reducing financial stress and improving cash flow management

The goal is not just to survive rate rises.

The goal is to create borrowers who feel calm, informed and financially resilient regardless of what the headlines are doing.

Why Online Calculators Are Not Enough

Many borrowers start by using an online refinance calculator or repayment estimator.

These tools can be useful as a starting point.

But they rarely tell the full story.

A proper refinance or loan strategy review should also consider:

• Lender policy differences
• Serviceability calculations
• Existing debts and liabilities
• Future plans
• Cash flow patterns
• Property equity position
• Household structure
• Self-employed income complexity
• Upcoming life changes
• Borrowing goals

Two borrowers with identical incomes can receive very different outcomes depending on lender policy and loan structure.

That is why working with a mortgage broker can provide significant strategic value.

At Base Home Loans, we help clients understand not just what they can do, but what makes the most sense for their situation.

Perth Borrowers Are Still Facing a Competitive Market

Despite higher interest rates, Perth’s property market remains surprisingly resilient.

In many suburbs, quality homes continue to attract strong buyer competition.

We are still seeing:

• Multiple-offer situations
• Fast-moving listings
• Buyers stretching to secure properties
• First home buyers competing aggressively
• Investors returning to the market

This means borrowers need to be prepared.

Having the right finance strategy in place before making an offer can make a significant difference.

This may involve:

• Understanding true borrowing capacity
• Knowing lender turnaround times
• Structuring deposits effectively
• Assessing valuation risks
• Choosing the right pre-approval strategy
• Understanding which lenders suit specific borrower profiles

In a competitive market, finance strategy can become part of your competitive advantage.

What We Believe at Base Home Loans

At Base Home Loans, we are less interested in helping clients chase hype or panic over every rate movement.

Instead, we focus on helping borrowers:

• Build sustainable lending structures
• Understand their options clearly
• Reduce financial stress
• Improve long-term cash flow
• Create a pathway toward debt reduction
• Make decisions aligned with real life

We believe the best borrowers are not necessarily the ones with the cheapest rate.

They are the ones with a strategy.

The borrowers who are calm during market uncertainty.

The borrowers who understand their budget.

The borrowers who are focused on their own long-term goals rather than reacting emotionally to headlines.

Should You Review Your Home Loan?

If you have not reviewed your home loan in the past 12–24 months, now is likely a good time to revisit it.

Particularly if:

• Your fixed rate is expiring
• Your repayments have increased significantly
• Your financial situation has changed
• You want to improve cash flow
• You are carrying higher-interest debt
• You are considering upgrading, investing or renovating
• You simply want clarity around your options

A refinance or strategy review does not mean you are committing to changing lenders.

The key is understanding your options before making reactive decisions.

Speak With Base Home Loans

Whether you are considering refinancing, fixing your interest rate, or simply wanting clarity around your current loan, having the right strategy matters.

At Base Home Loans, we help Perth borrowers look beyond the headlines and create lending strategies designed around real life.

If you would like a personalised home loan strategy review, we would love to help.

We’ll help you understand:

• Whether your current rate is still competitive
• If refinancing may improve your position
• Whether fixing makes sense for your situation
• How to structure your loan around your goals
• What your next steps could look like

Frequently Asked Questions

Is now a good time to refinance my home loan?

It depends on your current interest rate, loan structure, equity position and financial goals. For some borrowers, refinancing may improve cash flow or reduce interest costs. For others, the costs or timing may not make sense.

Should I fix my home loan interest rate?

Fixing may suit borrowers who value certainty and stable repayments. However, fixed loans can reduce flexibility and may not suit everyone.

How often should I review my home loan?

Many borrowers benefit from reviewing their loan every 12–24 months, particularly when interest rates, property values or personal circumstances change.

Can refinancing help reduce financial stress?

Potentially, yes. Refinancing may improve cash flow, consolidate debts or provide access to more suitable loan features depending on your situation.

Does refinancing always save money?

Not necessarily. Borrowers should also consider fees, loan features, future plans and the overall loan structure rather than focusing only on the interest rate.

Can a mortgage broker help negotiate with my current lender?

Yes. In some cases, a broker may be able to negotiate pricing or loan adjustments with your existing lender before refinancing is considered.

What makes Base Home Loans different?

Base Home Loans focuses on strategy-first lending. We help borrowers structure loans around their budget, lifestyle and long-term goals rather than simply chasing the lowest advertised rate.

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.