Mortgage holders could see significant savings by switching lenders, even with interest rates stabilizing, according to financial experts. The launch of Bilt Card 2.0 in February 2026, which will allow consumers to earn rewards points on mortgage payments regardless of their lender, is prompting a renewed focus on mortgage rate comparisons.
The Reserve Bank of Australia’s recent rate adjustments – three cuts since February 2025 followed by a 0.25 per cent increase earlier this month – have highlighted the potential for savings through refinancing. While many Australians are ahead on their repayments, the prospect of further rate rises underscores the importance of actively seeking better deals.
According to Victoria Devine, founder of Zella Money, a difference of even 0.4 per cent in interest rates can translate to substantial savings over the life of a loan. For a $694,000 mortgage, a 0.4 per cent difference equates to over $65,000 in savings. A 1.5 per cent reduction could save homeowners $230,000.
However, Devine cautions that the advertised rate isn’t always the rate a borrower will receive. Factors such as loan size, deposit amount, credit history, and income all influence the interest rate offered. Banks may advertise rates as low as 5.4 per cent, but borrowers with only a 15 per cent deposit may only qualify for a 6 per cent rate.
Devine recommends contacting your current lender to negotiate a better rate, emphasizing your willingness to explore other options. Comparison websites and mortgage brokers can as well assist in identifying competitive rates and fees. The federal government’s Money Smart website offers a mortgage calculator and a refinancing calculator.
The Federal Housing Administration (FHA) has announced increased loan limits for 2026, reflecting continued appreciation in home prices. These limits will be updated using a formula based on county or Metropolitan Statistical Area (MSA) home sale data, and will be effective for FHA case numbers assigned on or after January 1, 2026. Freddie Mac has also announced a 3.26% increase in conforming loan limits, effective January 1, 2026.
Devine stresses the importance of verifying the loan term when refinancing. Borrowers should ensure they maintain the remaining term of their original mortgage to avoid extending the repayment period and incurring additional interest charges. For example, someone seven years into a 30-year mortgage should secure a recent 23-year loan, not a new 30-year loan.
The launch of Bilt Card 2.0, offering rewards points on mortgage payments, is expected to further incentivize borrowers to evaluate their options. The card, launching February 7, 2026, will arrive in three different offerings, replacing the existing Bilt Mastercard. New applications for the current Bilt Mastercard closed November 5, 2025.
