Following the Reserve Bank of Australia's first rate hike in over two years, major banks including CBA and Westpac have joined NAB in predicting another 0.25% increase as early as May, potentially raising the cash rate to 4.10%. This anticipated movement creates a narrowing window for Sydney homeowners to secure competitive refinancing terms before borrowing costs rise further.
Nick Lissikatos from Trelos Finance emphasizes the substantial savings available through timely refinancing. "When you consider the life of a typical mortgage, even a modest rate reduction can save borrowers tens of thousands of dollars," Lissikatos says. "Across our client base, we're talking hundreds of thousands in collective savings." He notes that on Sydney's higher property values, a 0.25% rate reduction represents significant money over a loan's lifetime, directly impacting homeowners' capacity to build equity and weather market changes.
The refinancing urgency comes against a backdrop of forecast property price growth across Australia. ANZ expects capital city home prices to rise 4.8% in 2026, with Sydney and Melbourne tipped for 2-3% growth. Analysis by Canstar suggests median house prices in Brisbane and Perth could rise by more than $100,000 this year alone, highlighting regional disparities in the Australian housing market. For Sydney homeowners, this combination of potential rate rises and continuing property price growth creates a complex decision-making landscape where strategic financial planning becomes crucial.
Lissikatos observes that many Sydney borrowers discover significant rate disparities between their current mortgages and available market options. "Lender loyalty doesn't always translate to competitive pricing," he explains. "We're regularly finding clients who could be saving thousands annually by refinancing, often without even realising better rates were available." This reflects a broader shift in borrower behavior, with Australians becoming more proactive about managing their largest financial commitment as major banks align on expectations of a May rate rise.
With the RBA's rate trajectory and property price forecasts both pointing to continued market movement throughout 2026, demand for strategic refinancing advice is expected to remain strong. Borrowers who understand the numbers and act decisively will be best positioned regardless of future rate movements. More information about mortgage strategies is available at https://trelosfinance.com.au.
