Is It Time to Refinance Before 2026?

As the year draws to a close, many Bathurst and Lithgow homeowners start reviewing their finances and planning. One of the most valuable steps you can take before 2026 is assessing whether now is the right time to refinance your home loan. 

With interest rate changes, cost-of-living pressures, and shifting lending policies, refinancing can give you more control over your budget, reduce long-term interest costs, and set you up for a stronger financial start to the new year. 

If you’re a first home buyer or homeowner in regional NSW, here’s what you need to know. 

Why an End-of-Year Finance Check Matters 

The end of the year is often one of the best times to review your home loan. This is when lenders adjust their offerings, release competitive rates, and push promotional deals before the new year begins. 

For many borrowers, especially those who haven’t reviewed their loan for more than two years, there’s a high chance you’re paying more than necessary. 

A finance check helps you: 

• Identify if your interest rate is still competitive 

• Understand how much you could save by switching 

• Ensure your loan features match your lifestyle and goals 

• Prepare for any rate changes expected in 2026 

Signs It May Be Time to Refinance 

Not everyone needs to refinance, but certain indicators suggest it could be financially beneficial. Here are the most common signs for Bathurst and Lithgow homeowners. 

1. Your Interest Rate Is Higher Than Market Rates 

Many lenders offer significantly lower rates to new customers compared to existing ones. If your rate has crept up over the years, refinancing could unlock a sharper rate and immediate savings. 

2. Your Fixed Rate Is About to Expire 

If your fixed term ends soon, your home loan may revert to a higher variable rate. Refinancing allows you to secure a better rate or renegotiate before that happens. 

3. Your Household Budget Feels Tight 

With rising living expenses, refinancing can reduce monthly repayments and ease budget pressure. Even a small reduction in rate can provide meaningful financial relief heading into 2026. 

4. You Want Better Loan Features 

If you don’t have features like an offset account, redraw facility, or flexible repayment options, a refinance could help you get the right structure to support your long-term goals. 

5. Your Home’s Value Has Increased 

Many Bathurst and Lithgow properties have seen steady value growth in recent years. If your equity has increased, refinancing may help you access lower rates or release funds for renovation, investment, or debt consolidation. 

How Much Could Refinancing Save You? 

Even small rate changes can create significant savings. 

Example: 

On a $600,000 loan, reducing your interest rate by 0.40 per cent could save around $1,600 per year. 

Keeping your repayments the same after refinancing means you’ll also pay down your loan faster and save even more on long-term interest. 

For many homeowners, a refinance before 2026 could save thousands over the life of the loan. 

What to Consider Before You Refinance 

Refinancing isn’t always the answer for everyone. Before deciding, consider: 

• Break costs or discharge fees on your current loan 

• New loan fees (if applicable) 

• Whether the new loan structure suits your lifestyle 

• Long-term financial goals 

• Whether further upcoming rate changes may affect your strategy 

Working with a mortgage broker can help you weigh up all factors and avoid common pitfalls. 

How a Mortgage Broker in Bathurst & Lithgow Can Help 

A refinance can unlock substantial savings, but comparing lenders and understanding the fine print can be overwhelming without guidance. 

A local mortgage broker can: 

• Analyse your current home loan 

• Compare rates from more than 30 lenders 

• Calculate your potential savings 

• Identify the best time to refinance 

• Manage the application from start to finish 

• Ensure the new structure aligns with your goals for 2026 and beyond 

For many homeowners, a broker-led review is the simplest way to get clarity, confidence, and potentially major financial benefit. 

Should You Refinance Before 2026? 

If you haven’t reviewed your home loan recently, now is the ideal time. An end-of-year finance check can reveal opportunities to lower your rate, improve your loan features, reduce repayments, or accelerate your financial progress. 

With lenders competing harder than ever and recent market shifts creating new options, refinancing before 2026 could provide a meaningful financial reset. 

If you're in Bathurst or Lithgow and would like a personalised refinance review, reaching out to a mortgage broker could be the next smart step.