Interest rates are moving again, and many Australian borrowers are starting to reassess whether their current finance still suits their situation.
After two rate rises in quick succession, repayments have increased for many borrowers, fixed rates have also been repriced by some banks, and inflation remains a key factor influencing future rate expectations.
At the same time, banks have updated their approach to supporting customers experiencing financial difficulty. This makes it important for borrowers to understand two things: whether their loan is still competitive, and what support may be available if repayments are becoming harder to manage.
A finance review does not automatically mean refinancing. It means looking at your current loan, comparing it with the market, checking the trade-offs, and making a decision based on your circumstances.
Start With What Has Changed Since Your Loan Was Set Up
The first step in reviewing your finance is to compare your current position with where you were when the loan was arranged. Your income, expenses, household budget and financial goals may have changed. The rate environment has also changed.
Inflation is part of the reason borrowers and lenders are watching the market closely. Headline inflation fell from 3.8% to 3.4% in November 2025, marking the fifth consecutive month it had remained in the 3% range. The earlier dip to 1.9% in June 2025 appeared to be more of a pause than a clear finish line.
That matters because when inflation is unpredictable, interest rate movements also become harder to predict. Lenders may widen pricing differences, and credit teams may place more focus on loan structure, repayment buffers and borrower resilience.
Check How Rate Rises Have Affected Your Repayments
The March 17 rate increase was followed by lenders rolling through a 0.25 percentage point rise to borrowers. This came after the February move, meaning rates had increased twice in quick succession.
For many variable-rate borrowers, this means repayments have lifted across the board. The impact can be felt quickly because lenders usually adjust repayments soon after passing on a rate change.
This is where a loan review becomes practical. It helps you answer questions such as:
- How much have my repayments increased?
- Has my lender passed on the full rate rise?
- Is my current rate still competitive?
- Would another lender offer a better structure?
- Could I reduce pressure by refinancing or restructuring?
- Am I still using my loan features effectively?
With repayments adjusting, small differences between loans can start to matter more.
Understand Why Fixed Rates Are Also Moving
Fixed-rate borrowers may not feel repayment changes immediately, but fixed rates are still affected by market expectations.
Before the March decision, fixed rates had already started moving higher because markets were pricing in further rate increases. Shorter-term fixed rates, especially one- and two-year options, saw the most movement because they reflect near-term expectations more directly. Mid-term fixed rates, such as three-year options, also repriced higher, but more gradually.
This means fixed rates are not only based on where the cash rate is today. They are also shaped by where lenders expect rates to move in the future.
If your fixed rate is ending soon, or you are considering fixing your loan, it is worth comparing fixed, variable and split options carefully. A fixed rate may offer repayment certainty, but it can also reduce flexibility and may include break costs if your circumstances change.
Compare Refinancing Against Your Current Loan
After two rate rises this year, many borrowers are asking a simple question: could I be doing better?
Refinancing may help if your current loan is no longer competitive. Switching loans could help you secure a sharper rate, reduce repayments or restructure your loan to better suit current conditions.
However, refinancing is not always the right move. A lower rate can look appealing, but the full outcome matters.
Before switching, check:
- switching costs and fees
- discharge fees
- valuation costs
- fixed-rate break costs, if relevant
- whether your loan term will reset
- whether you will lose useful features
- whether the repayment savings outweigh the cost of moving
For example, losing features such as offset, redraw, or repayment flexibility may not be worth a slightly lower rate. The key decision is not just whether you can find a cheaper loan. It is whether your current loan still fits your situation, and whether switching would leave you better off overall.
Look Beyond the Lowest Interest Rate
In a rising-rate environment, it is easy to focus only on the interest rate. That is understandable, but it can lead to short-term decisions.
A useful loan review should look at the full structure of your finance, including:
- interest rate
- repayment amount
- fixed or variable structure
- loan term
- repayment flexibility
- offset or redraw access
- fees and ongoing costs
- future borrowing plans
- your cash flow buffer
- what happens if rates rise again
The lowest rate is not always the best option if the loan does not suit how you manage your money. A slightly higher rate with the right structure may offer better value than a cheaper loan that limits flexibility.
Ask for Financial Hardship Support Early if You Need It
Not every borrower reviewing their finance is looking for a better deal. Some are under genuine repayment pressure.
Australia’s banks have strengthened their commitment to supporting customers experiencing financial hardship. The Australian Banking Association released updated guidelines aimed at making assistance more compassionate and easier to access.
The revised guidelines build on the Banking Code of Practice and encourage banks to:
- spot warning signs earlier
- reach out proactively
- have clearer and more empathetic conversations
- provide practical, personalised support
Financial difficulty can happen for many reasons, including illness, job loss, relationship breakdown or rising living costs. If repayments are becoming difficult, it is better to ask for help early rather than waiting until the situation becomes more serious.
Your lender may be able to discuss support options, and a broker can help you understand what steps may be available before you approach the bank.
What to Watch as Rates Continue to Move
After the recent rate rises, attention has shifted to what happens next. Inflation, labour market conditions and global pressures will all influence whether rates hold, rise further or begin to ease.
This uncertainty is one of the main reasons to review your finance before pressure builds. Borrowers who adapt well tend to review loans before expiry pressure hits, use structures that can tolerate rate changes, and align repayments with conservative cash-flow assumptions.
A finance review can help you understand where you stand now, how future rate changes could affect you, and which options are worth considering.
Peel Finance Brokers can help you compare your current loan with available options, assess refinancing trade-offs, review fixed and variable structures, and work through whether your finance still suits your situation. If your repayments have increased, your fixed term is ending, or you want clarity before the next rate decision, contact us today.
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- Expectations for Inflation in 2023
Dip. of Management (Deacon University)
Dip. of Finance/Mortgage Broking Mgt.
Assoc. Cert. of Business (Real Estate)
Assoc. of Mort. Ind. Assoc. of Aust. (AMIAA)
Terry Boag is the founder and CEO of Peel Finance Brokers and has been providing professional and loyal service to the Mandurah and southwest area for 25 years. With a long history of financial experience, Terry is reliable and dedicated to his clients, always ensuring the highest customer service and delivering strong lender relationships.