Hopes of a Christmas rate cut faded with the Reserve Bank’s decision to keep rates on hold in December. But that doesn’t mean you can’t make a rate cut of your own.

The Reserve Bank of Australia (RBA) may be the Grinch that stole the Christmas rate cut.

But even though the cash rate was unchanged in December, there are valuable opportunities for property owners to take matters into their own hands and arrange a rate cut of their own.

Could we see rates rise in 2026?

Looking at the bigger picture, there are plenty of positives. For instance, the job market is strong, with unemployment sitting at just 4.3%[i].

The Australian economy is growing – admittedly by a modest 2.1% but it’s heading in the right direction[ii]. 

So, why haven’t the earlier predictions of rate cuts, made by several of our big banks[iii], come to fruition? The answer lies in the ongoing cost of living crunch.

Inflation is still sitting at 3.8%[iv]. That’s a lot higher than the RBA’s target range of 2-3%. But here’s the thing.

As Craig Betalli, Senior Finance Specialist at Our Broker, points out that these factors are beyond homeowners’ control.

What we can control is the rate we pay on our home loan.

Make sure you are with the bank offering the best rates available

Craig explains “Given the expectation of no further cuts – and maybe even a rate rise in 2026, most of the banks that were aggressive in pricing to get new business are now taking a more conservative approach to pricing discounts.”

“This makes it more important to make sure you are with the bank offering the best rates available.”

According to Craig, smaller banks can offer attractive rates. But he adds, “Conservative borrowers are often rusted on to their bank – the one they have been with for 20 years or more, and there is a misconception about the risk of borrowing through a smaller bank.”

The reality, says Craig, is that smaller, industry specific, or regional lenders can be highly cost-effective, often with home loan rates around 5.2% for a basic type of loan. Some lenders have full-featured loans at around 5.3%. 

For context, the average rate among the big banks is 5.5%[v].

That seemingly minor difference can add up to big savings on repayments and long-term interest costs.

Is it time to fix?

As Craig explains, the best fixed rates were up for grabs several months ago. That doesn’t rule fixing out altogether though.

“There are still some cheap 1-, and 2-year rates at 5.1%,” says Craig. “NAB and ANZ both come in with a 2-year fixed rate of 5.19%.”

Property remains an exceptional investment

More broadly, Craig advises, “Check your rate, and don’t be afraid of the smaller lenders.

“See if you can save money by refinancing your home loan and use those savings to spoil yourself and your family this Christmas.”

It’s great advice.

And bear in mind, your family home or investment property remains an outstanding investment.

“If you’re not convinced, recent analysis by The Australian shows housing has comfortably beaten shares for gains over the last 25 years[vi],” says Angus Raine, Executive Chairman, Raine & Horne.

At the head of the cue, according to research compiled by The Australian, was Adelaide real estate, up 559% since 2000, with Brisbane and Hobart also on the podium. The strongest performer from the equity markets was the US Nasdaq, ranking a distant seventh.

Angus adds, “Factor in a lower home loan rate, and you’re onto a serious winner with Australian bricks and mortar.”

Table 1 Market Performance 2000–2025

Source: Real Estate Institute of Australia; ASX.com.au; global market indices. Compiled and published in The Australian, 10 December 2025.

Table 2: Top tips for refinancing

For all your mortgage needs or to refinance an existing loan, contact Our Broker today on 1800 913 677.

[i] https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-remains-43

[ii] https://www.abs.gov.au/media-centre/media-releases/australian-economy-grew-04-september-quarter

[iii] https://www.canstar.com.au/home-loans/rba-cash-rate-hold-november-2025/

[iv] https://www.abs.gov.au/media-centre/media-releases/cpi-rose-38-year-october-2025

[v] https://www.rba.gov.au/statistics/interest-rates/ Refer Statistical Table F6 – Housing Lending Rates

[vi] https://www.theaustralian.com.au/wealth/investing/investing-in-shares-or-property-has-a-clear-winner-over-25-years/news-story/aa038d5f8979d320489de259144fd75d#:~:text=In%20the%20last%20100%20years,from%20being%20affordable%20to%20unaffordable%E2%80%9D.