Refinancing jumps 12.5% as lenders compete with better rates and cashback offers—now’s the time to review your home loan.
The latest Property and Mortgage Insights report from PEXA reveals a 12.5% surge in refinancing activity for the March 2025 quarter, sparking fierce competition among lenders and marking a clear response to February’s Reserve Bank rate cut.
According to PEXA’s data, 91,786 refinances were settled in the quarter, up significantly from the same period in 2024. PEXA Group chief economist Julie Toth attributed the surge to improved borrowing capacity and new lender incentives such as reduced fixed rates and cashbacks.
“Growth in refinancing activity has been driven by the recent interest rate cut… and resulted in lenders introducing incentives such as reduced fixed-rate loans and cash incentives for homebuyers,” said Ms Toth.
Nationally, property settlements remained strong, with 156,573 transactions across the five mainland states totalling $158.5 billion—up 1.2% in volume and 5.3% in value compared to the March 2024 quarter. Residential property alone accounted for $140.7 billion, a 6.4% increase year-on-year and a 56.1% rise compared to March 2020.
Queensland Takes the Crown
Queensland led the way in both transaction volume and price growth. The state recorded 45,530 settlements—more than any other—and median house prices in Greater Brisbane rose 12.3% year-on-year. Regional Queensland outpaced that with a 13.6% increase. Popular suburbs included areas across the Gold Coast and Sunshine Coast, though rising prices have begun to edge out many first home buyers.
“This increased popularity in QLD is also coming at a cost for first home buyers… the proportion of properties selling under $800,000 is now in sharp decline,” Ms Toth noted.
Victoria also posted strong results, with residential settlement volumes rising 4.1% and commercial property activity showing healthy growth, especially in Melbourne’s expanding western, northern, and south-eastern suburbs.
South Australia was the standout performer in percentage terms, with settlement volumes up 4.3%. WA followed closely, recording double-digit growth in total property value, particularly around Greater Perth.
In contrast, New South Wales lagged with residential growth under 1% and a notable decline in commercial settlement volumes, despite topping the charts in commercial property value at $7.7 billion.
Mortgage Market Trends
Loan activity was also up across the board. A total of 119,491 new home loans were settled—5.4% more than last year—totalling $80.2 billion. Of that, $73.5 billion was for residential lending, an 8.2% increase from the March 2024 quarter.
PEXA’s report suggests a renewed wave of ‘mortgage wars’ is underway, driven by falling rates, competitive offers, and shifting buyer preferences toward more affordable markets in Queensland, WA, and SA.
Thinking about refinancing? Now could be the perfect time to review your home loan. With lenders competing harder than ever, you might unlock a better rate or cashback offer—get in touch to explore your options.
