There’s no extra Christmas pain for mortgage holders with the Reserve Bank of Australia (RBA) leaving interest rates on hold.
The cash rate is being held at 3.60 per cent to finish the year.
Graham Cooke, head of consumer research at Finder, said momentum had swung quickly in terms of what will happen in 2026.
He said Finder’s expert panel was split.
“Just a few months ago, another rate cut looked within reach. Now, we have the most divided panel I’ve seen in years. Nobody knows which way the RBA will go next,” he said.
“Borrowers should tread carefully over the festive period. You don’t want to go into the New Year with a Christmas debt hangover, especially when your mortgage could be getting more expensive.
“If you haven’t reviewed your home loan in a while, now’s the time. Refinancing to a lower rate or negotiating a better deal with your lender could save you thousands of dollars.”
Finder analysis shows that a homeowner with a $600,000 mortgage on an average rate could save $4,079 over the next 12 months by switching to the lowest fixed rate, assuming the cash rate holds during that time.
Cooke said fixing your rate is a personal decision that comes down to your risk appetite.
“If you are really struggling and need the certainty of set repayments to manage your budget, fixed rates can provide that emotional security and certainty,” he said.
“Trying to “beat the bank” by fixing your rate is often a losing gamble because banks are experts at pricing in future rate movements.
“If variable rates do drop, you could be stuck paying a higher fixed rate or face a penalty of thousands of dollars to get out.”
Troy Dodds is Parra News' Managing Editor and Breaking News Reporter. He has more than 20 years experience as a journalist, working with some of Australia’s leading media organisations. In 2023, he was named Editor of the Year at the Mumbrella Publish Awards.