25/09/2025
An increasing number of Australian borrowers are successfully refinancing their home loans, as improving economic conditions ease the barriers that previously kept many in mortgage prison.
The Mortgage and Finance Association of Australia’s (MFAA) August 2025 Member Sentiment survey reported that 99% of the 333 brokers surveyed had assisted clients with refinancing to a new lender over the past six months. This represents a 2% increase on the February survey. A similar proportion also secured discounts for their clients, with the figure rising by 1% since the last round of results.
The data further highlighted that 92% of brokers have recently assisted clients who were refinancing through a broker for the first time, suggesting that more borrowers are seeking professional guidance in today’s market.
Improved Sentiment and Broader Support
Brokers noted that lower inflation and recent interest rate cuts have played a pivotal role in enabling refinancing activity. Borrower sentiment has also shifted, with 34.2% of brokers reporting that their clients expressed optimism about their financial situation, up from 32.7% in February, while 47% said their clients held a neutral outlook.
In addition, the provision of hardship support has become more prominent in broker services. Eighty per cent of brokers reported advising clients on hardship options, a 12% rise since February. According to the MFAA, serviceability requirements are proving less restrictive than in previous years, allowing a greater number of households to explore more competitive lending opportunities.
Strategic Opportunities for Brokers
Remaining informed of economic and market developments has become essential for brokers seeking to maximise opportunities for their clients. The recent series of rate cuts has created a more favourable refinancing environment, enabling brokers to both strengthen existing relationships and attract new clients. At FINSTREET, we are supporting this trend by offering streamlined refinancing solutions across Prime, SMSF, Expat and non-resident loans, ensuring brokers have access to a wide range of products to meet evolving client needs.
Job Security Concerns Emerge
Despite improved refinancing conditions, the survey also revealed a rise in concerns around employment. The proportion of clients with a negative outlook on job security increased significantly, from 4.8% in February to 18.3% in August.
Job security is now the second-largest driver of borrower pessimism, behind cost of living pressures, with housing supply ranked third. For borrowers with a neutral outlook, cost of living has become the dominant concern, followed by housing supply, with interest rates dropping to third place.
The MFAA indicated that global economic uncertainty and the rapid advancement of artificial intelligence may be fuelling job security concerns. Persistent housing supply shortages are also contributing to cautious sentiment among borrowers.
Outlook
The findings reflect a market that is gradually shifting in favour of borrowers, with refinancing activity at its strongest level in years. However, challenges such as cost of living pressures and job uncertainty remain front of mind for many households. In this environment, brokers play a critical role, not only in securing competitive refinancing outcomes but also in providing guidance and support for clients navigating financial stress.
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