EOFY refinancing surge: Why it may be a good time to switch home loans
As the end of financial year (EOFY) approaches, homeowners are ramping up their refinancing efforts – and with good reason. After two Reserve Bank cash rate cuts in 2025, borrowers are seizing the opportunity to reset their home loan and improve their financial footing heading into the new financial year.
Refinancing activity on the rise
The latest data from the Australian Bureau of Statistics (ABS) reveals 65,030 home loans were refinanced between lenders over the March quarter – a 5.1 per cent increase from the previous quarter. This marks the third consecutive quarterly rise, afer a 12.1 per cent spike in December.
After two years of rate hikes, borrowers are now seeing some relief. The RBA cut the cash rate by 25 basis points in both February and May 2025, prompting many homeowners to reassess their mortgage and consider switching to a better deal.
Why EOFY is prime time to switch
Refinancing in the lead-up to June 30 isn’t just about chasing a lower interest rate. It’s also a chance to declutter your finances, consolidate debts, and reduce your overall repayments.
There may also be tax-time perks . For property investors, reviewing your loan structure could help improve deductibility and make EOFY reporting easier. For owner-occupiers, reducing repayments by even a few hundred dollars a month could open up breathing room in the household budget.
Cashbacks are back on the table
After mostly disappearing in 2023, cashback offers are making a comeback in 2025 . Several lenders are once again dangling thousands of dollars to attract new customers, making now a compelling time to shop around.
As Mozo recently reported, some cashback deals are worth up to $4,000 for eligible refinancers , though eligibility criteria and loan size minimums apply. These short-term perks shouldn’t outweigh the long-term value of a competitive interest rate but they can help offset the cost of switching.
Is your home loan still competitive?
If you haven’t reviewed your home loan this year, you could be leaving money on the table. Even a small rate reduction can save thousands over the life of your loan – and with the RBA easing policy for the first time in years, lenders may be more open to negotiating.
Whether you plan to refinance or just want a better deal with your current bank, EOFY is the perfect time to act.