“If you have not reviewed your rate in the last 12 months, you are likely overpaying. 2026 is an ideal time for Melbourne borrowers to audit their loans.”
Melbourne’s property market in 2026 presents a particular set of conditions for refinancers: prices are recovering after a period of softness, equity positions for recent buyers may be tight, and three consecutive rate rises have pushed repayments materially higher than a year ago.
The Melbourne equity consideration
Refinancing requires a lender valuation. If your LVR (loan-to-value ratio) has moved above 80% — either due to modest price falls or because you entered with a small deposit — your refinance options narrow. Lenders charge LMI above 80% LVR, and some lenders have different rate tiers depending on LVR band. Getting a current valuation estimate before applying is important.
The rate saving available in 2026
Borrowers on legacy variable rates from major banks — particularly those who haven’t reviewed in 12–24 months — are often paying 0.3–0.5% above what new customers receive. At current Melbourne median loan sizes of $550,000–$700,000, that premium represents $1,650–$3,500 per year. That’s a meaningful saving available through a standard refinance.
Local factors to consider in Melbourne
Melbourne’s auction clearance rates are recovering in 2026, suggesting buyer confidence. If you’re refinancing to access equity — for a renovation or investment — the valuation environment is more favourable now than it was 12 months ago when Melbourne prices were softer.
The case for waiting
If the RBA holds in June and signals a pause, lenders may sharpen variable rate offers in the second half of 2026. Waiting until after the June decision — then refinancing in a stable rate environment — is a reasonable alternative if your current rate is not dramatically uncompetitive.
→ You may wish to speak with a licensed mortgage broker to assess your personal circumstances. This is general information only. Individual circumstances vary and scheme details change regularly. Verify current eligibility, caps, and terms with official sources before making decisions. Speak with a licensed mortgage broker for advice tailored to your situation. All loans are subject to lender approval.
Sources: CoreLogic, Melbourne Dwelling Values May 2026; RBA Cash Rate Target, May 2026; ASIC MoneySmart, Refinancing Your Home Loan 2025.
