The IMF has just warned that the RBA should remain prepared to increase interest rates further as inflation remains elevated.
At the same time, higher fuel and energy prices are adding another layer of cost pressure to Australian businesses and households.
With the next RBA meeting scheduled for 28–29 September, the question for borrowers isn’t simply “Will rates rise?”
It is:
“Am I paying more interest than I need to today?”
A refinance or loan restructure that reduces your rate by just 0.25% can make a meaningful difference when the debt is substantial.
For example, on an interest-only loan, the annual interest saving from a 0.25% reduction would be approximately:
| Loan balance | Rate reduction | Approx. annual saving |
|---|---|---|
| $750,000 | 0.25% | $1,875 |
| $1,000,000 | 0.25% | $2,500 |
| $2,000,000 | 0.25% | $5,000 |
| $3,000,000 | 0.25% | $7,500 |
| $4,000,000 | 0.25% | $10,000 |
And that’s before considering what happens if rates rise again.
For a business carrying $3 million of debt, for example, a 0.25% saving represents $7,500 a year that can potentially stay in the business rather than being paid to the lender.
Of course, refinancing isn’t automatically the right answer. Break costs, loan structure, fees, security, covenants, serviceability and the overall lending proposition all need to be considered.
But that’s precisely why now is a good time to review your lending position — before another rate move rather than after it.
The RBA has already increased rates three times in 2026, and current economic commentary continues to point to further rate-hike risk.
Don’t wait for the next rate announcement to discover you could have reduced your interest bill.
If you have $750k+ of residential, commercial, investment or business debt, I’d be happy to review your current lending structure and see whether there is an opportunity to improve it.
Send me a message or book a consultation with Advanced Finance Group.
The numbers above are illustrative only and assume the full loan balance is interest-only for 12 months. Actual savings depend on the loan, lender, structure, fees and rate available.
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