Refinancing in 2026 is a different question to the one borrowers were asking a year ago. After three rate cuts through 2025, the Reserve Bank of Australia (RBA) has lifted the cash rate three times this year, and at the time of writing it sits at 4.35%, back at its previous peak, with variable home loan rates around the 6% mark and the path from here still debated. In that setting, refinancing is less about chasing falling rates and more about three separate questions: whether your current loan is still competitive, whether its structure still suits you, and whether you can pass the serviceability test to switch at all. As an accountant you will run the numbers without help; the value is in knowing what to run them on.
Because a worthwhile refinance in this market depends as much on structure and serviceability as on rate, it is an area where a mortgage broker for accountants can sharpen the decision. This article covers why 2026 changes the calculus, the structural gains a refinance can deliver, the serviceability hurdle and the way around it, and how the costs stack up against the savings.
Why Refinancing in 2026 Is a Different Question
With rates having risen rather than fallen, the easy “lock in a lower rate” logic no longer applies, and the decision needs more thought. What has not changed is the loyalty gap: lenders often reserve their sharpest pricing for new customers, so a loan taken out a few years ago, or one that has reverted to a higher rate, may now sit well above what is available. The point of a 2026 refinance is usually to close that gap or to improve the loan in ways beyond the rate, not to time the market.
It Is Not Just About the Rate
For an accountant, a refinance is also a rare opportunity to fix the structure of the borrowing, which often matters more over time than a small rate difference. Three structural improvements are worth considering whenever you review the loan.
Cleaning Up Deductible Debt
If your investment and private borrowings have become blurred, perhaps through a redraw used for mixed purposes, a refinance is the moment to separate them into clean splits so the deductible interest is clearly identifiable. Setting an offset against the non-deductible loan rather than the investment loan preserves the deductible interest, and starting fresh avoids carrying an apportionment problem you would rather not have.
Switching Between Interest-Only and Principal-and-Interest
Circumstances change, and the repayment type that suited you at the outset may no longer fit. A refinance lets you move from interest-only to principal-and-interest to build equity, or the other way to support cash flow, bearing in mind that interest-only debt is assessed more conservatively for serviceability.
Untangling Cross-Collateralisation
If your properties are cross-secured, refinancing is a practical point at which to separate the securities. Standalone security generally gives you more flexibility to sell or refinance one property without disturbing the other, which is easier to arrange as part of a planned refinance than mid-transaction.
The Serviceability Test Is the Real Hurdle in 2026
Here is the catch that catches many borrowers in a higher-rate environment: to switch lenders you generally have to pass a fresh serviceability assessment, and the Australian Prudential Regulation Authority (APRA) requires that to be done at your actual rate plus 3 percentage points. With variable rates near 6%, that means qualifying at roughly 9%, and some borrowers who comfortably meet their current repayments cannot clear that bar to move, a situation often called mortgage prison.
There is, however, a recognised path around it for the right borrower. Under the Australian Securities and Investments Commission (ASIC) responsible lending guidance, lenders may apply a reduced buffer, commonly around 1%, for a like-for-like refinance, assessed case by case. The conditions are strict: typically around 12 months of excellent repayment conduct, no material increase in the loan amount or term, and principal-and-interest repayments. Accountants with strong, stable income and a clean record are often well-placed to use this, which can be the difference between being stuck and securing a better deal. It is exactly the kind of policy nuance worth confirming before assuming you cannot refinance.
The Professional Benefits Still Apply When You Refinance
A refinance is not only for new purchases, and the concessions tied to your profession carry across to it. This can tilt the decision in your favour even when the headline rate saving looks modest.
Eligible members of bodies such as Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia, or the Institute of Public Accountants (IPA) can often access professional packages, negotiated rate discounts, and waived Lender’s Mortgage Insurance (LMI). The LMI waiver matters most if you are refinancing above 80% of the property value, for instance to release equity, where eligible accountants may go up to 90% loan to value ratio (LVR), and in some cases 95%, without paying it. A broker who knows which lenders extend these concessions can find value a straight rate comparison would miss.
Weighing the Costs Against the Savings
Refinancing is rarely free, so the saving has to clear the costs before it is worthwhile. The arithmetic is straightforward once you have the figures.
- Switching costs typically include a discharge fee on the existing loan and application or valuation fees on the new one, and possibly LMI if you are moving above 80% LVR.
- Fixed-rate loans can carry break costs, which are sometimes large enough to outweigh the benefit of moving before the fixed term ends.
- Cashback offers, commonly around $3,000, can offset these costs, but a cashback should be treated as a bonus on an already sound decision, not the reason for it, since a higher ongoing rate will erase it quickly.
- If you are self-employed, the new lender will reassess your income from your latest financials, so the timing of your finalised figures and the choice of lender both affect the outcome.
When Refinancing May Not Be Worth It
It is worth being honest about the cases where staying put is the better call. A refinance tends not to pay off when the remaining balance is small, when fixed-rate break costs or other exit fees are high relative to the saving, or when you are close enough to the end of the loan that there is little interest left to save. It also will not help if you cannot pass serviceability and do not meet the like-for-like exception conditions, in which case the better move may be to renegotiate with your current lender. Chasing a cashback into a loan with a worse ongoing rate is the most common way borrowers talk themselves into a refinance that costs them.
Frequently Asked Questions (FAQs)
Should I refinance in 2026 even though rates have gone up?
Possibly, but for different reasons than in a falling-rate year. Rising rates widen the gap between sharp new-customer pricing and older or reverted loans, and they make a structure review more valuable, not less. Whether it stacks up depends on your current rate against the market, the structural improvements available, the costs of switching, and whether you can pass serviceability.
Can I refinance if I cannot pass the 3% serviceability buffer?
Sometimes. For a like-for-like refinance, lenders may apply a reduced buffer of around 1% on a case-by-case basis, provided you meet strict conditions such as around 12 months of excellent repayment conduct, no material increase in the loan amount or term, and principal-and-interest repayments. A clean record and stable income put you in a strong position to use this path.
Do the professional concessions apply to a refinance?
Yes. Eligible accountants can access professional packages and negotiated rate discounts on a refinance, and where you are moving above 80% of the property value, the LMI waiver can apply up to 90% LVR, sometimes 95%. These benefits can make a refinance worthwhile even when the rate difference alone looks small.
Is a cashback offer a good reason to refinance?
Only as a secondary consideration. A cashback, commonly around $3,000, can offset your switching costs, but it should sit on top of a decision that already makes sense on rate and structure. A loan with a higher ongoing rate will absorb the cashback quickly, so it is a bonus rather than a basis.
How does refinancing affect my deductible debt?
A refinance is a good opportunity to clean up your structure, separating investment and private borrowings into clear splits and placing any offset against the non-deductible loan. The key is to avoid recreating a mixed-purpose loan in the process, since deductibility follows the use of the funds rather than the property securing them.
Does my self-employed income complicate refinancing?
It adds a step rather than a barrier. The new lender will reassess your income from your latest tax returns and financials, usually around two years, and the figure they recognise depends on how those are read and which add-backs apply. Timing the application around your finalised figures and choosing a lender that reads accountant income well both help.
The Bottom Line
In 2026, with the cash rate back near its peak and rates having risen rather than fallen, refinancing is neither an automatic win nor an automatic mistake; it is a calculated question of rate, structure, cost, and whether you can actually switch. The serviceability buffer is the binding constraint, but the like-for-like exception opens a path for borrowers with clean conduct, and as an accountant you can layer professional concessions on top of whatever rate is on offer. Run the break-even, weigh the structural gains alongside the rate, and get the serviceability question answered before you conclude you are stuck, because the better deal is often closer than the headlines suggest.