Refinancing Hits Record 57% of Australian Loan Lodgements as Investor Lending Falls 44%

Key takeaway: In September 2026, refinancing accounted for a record 57% of all loan lodgements at Loan Market Group, while investor lending fell by up to 44% — the clearest sign yet that Australia's mortgage market has shifted from new purchase-led growth to existing-debt restructuring.

Why Is Refinancing at a Record High in Australia?

Loan Market Group (LMG), one of Australia's largest mortgage aggregators, reported that refinancing accounted for a record 57% of all loan lodgements in September 2026 — the highest share ever recorded by the group. This surge is occurring alongside Australia's cash rate sitting at 4.60% and annual CPI at 4.0%, which have squeezed household budgets and prompted a wave of existing mortgage holders to seek better rates elsewhere.

The combination of declining new purchase lending and a sharp fall in investor activity has made refinancing the dominant driver of broker business across Australia's mortgage market.

What Is Driving Investor Lending Down 44%?

Investor lodgements at LMG fell by up to 44% in September 2026, according to reporting by Australian Broker. Dual pressures — continued rate rises and changes to property taxation — have significantly dampened investor appetite, particularly in Sydney and Melbourne where yield compression has made debt-funded property investment substantially less attractive than in prior years.

This decline in investor activity is reshaping how brokers and lenders operate, with many now focusing almost entirely on owner-occupier refinancing as their primary revenue source.

"Declining new lending and a deepening investor retreat reshape the aggregator's application pipeline." — The Adviser, 21 October 2026

What Does the Refinancing Surge Mean for Non-Bank Borrowers?

Record refinancing activity creates a clear opportunity for borrowers currently on high standard variable rates with the major banks. Non-bank lenders typically offer more competitive rates and more flexible serviceability criteria, making them an attractive destination for borrowers who have remained with the same bank for years and may now be paying well above market.

For self-employed borrowers in particular — those who don't qualify for standard bank products — refinancing through a non-bank Alt Doc pathway can unlock competitive rates without requiring payslips or tax returns as primary income evidence.

What MPFG Borrowers Should Know

With refinancing at record highs across Australia, now is a strategic moment for existing borrowers — particularly self-employed Australians and property investors — to review their current loan terms. MPFG Capital's Easy Refinance product is available up to $7.5M and accommodates Alt Doc income verification using bank statements, BAS statements, or an accountant's letter.

If your current lender has been passing on rate rises while your income profile or property value has changed, a refinance assessment with MPFG could identify a significantly better rate and a loan structure suited to your actual circumstances.

FAQ

Why is Australian refinancing at a record high in 2026?

Many borrowers who locked in low fixed rates in 2021–2022 have since rolled onto much higher variable rates. Combined with a cash rate of 4.60% and persistent inflation, Australians are increasingly prioritising rate relief over new borrowing — making September 2026's 57% refinancing share a product of structural, not temporary, forces.

How does a 44% fall in investor lending affect non-bank lenders?

When investor lending drops, non-bank lenders tend to see stronger demand from owner-occupiers and refinancers seeking flexible assessment criteria. Non-bank lenders with Alt Doc and non-standard income verification products are well-positioned to serve borrowers who can no longer access bank funding due to changed income circumstances or tighter bank credit policies.

Can I refinance a self-employed home loan through a non-bank lender in Australia?

Yes. Non-bank lenders such as MPFG Capital offer Alt Doc refinancing using bank statements, BAS statements, or an accountant's letter instead of payslips — making refinancing accessible to self-employed Australians, small business owners, and those whose income does not fit standard bank assessment templates.

This article is general information only and does not constitute financial or credit advice. All applications are subject to credit assessment by MPFG Capital (ACL 553698).