Refinancing in Hobart: what you need to know in 2025
Hobart has transformed from Australia's most affordable capital city into one of its most discussed property markets over the past decade. Sustained interstate migration, a booming tourism economy, the University of Tasmania's expanded presence, and critically limited housing supply have driven median house prices from under $400,000 in 2015 to over $700,000 in 2025. For homeowners who purchased during the earlier part of this growth cycle, equity positions are extraordinary — often doubling or tripling their initial equity in under a decade.
The Hobart lending market has some unique characteristics. Hobart's smaller market size means fewer local lenders, but national lenders fully service Tasmania and offer identical rates and products to those available on the mainland. The key for Hobart borrowers is not access — it is awareness. Many long-term Hobart homeowners are on rates set years ago, with some of the largest proportional equity gains in Australia, and have simply not reviewed their mortgage in line with how their financial position has improved.
Is now a good time to refinance in Hobart?
Hobart borrowers who purchased before 2018 are in a particularly strong position — 5+ years of strong capital growth has pushed many into LVR tiers (sub-60%) that attract the sharpest rate pricing from virtually all lenders. Even those who purchased during the 2019–2022 growth phase have generally maintained or improved their equity. On a $490,000 Hobart loan, the 0.8% rate gap between existing rates and market-best is approximately $325/month — meaningful in any household budget.
Hobart property market snapshot
| Median house price | $720,000 |
| Median unit / apartment | $480,000 |
| Typical mortgage balance | $400,000–$580,000 |
| Average existing variable rate | ~6.5% p.a. |
| Our best variable rate (from) | 5.69% p.a. |
| Average monthly saving (our clients) | $340 |
Sources: CoreLogic, ABS, RBA. Rates as at June 2025. Indicative only.
Hobart investment properties and short-term rental
Hobart's tourism economy has made it one of Australia's densest short-term rental markets relative to its size. Properties in Battery Point, Sandy Bay, and the Hobart CBD waterfront are highly sought-after for holiday letting. Short-term rental income treatment varies by lender — most require a 12-month history shown on tax returns, and count 70–80% of gross income toward serviceability. We work with Tasmanian investment property owners frequently and know which lenders are most accommodating for Hobart holiday-let income assessment.
Areas we serve near Hobart
We service all of Hobart and surrounding suburbs including: Hobart CBD, Sandy Bay, Battery Point, South Hobart, West Hobart, North Hobart, New Town, Lenah Valley, Glenorchy, Moonah, Claremont, Berriedale, Rosetta, Clarence, Howrah, Bellerive, Rokeby, and all Greater Hobart suburbs.
Documents you will need
- Income: Last 2 payslips, or 2 years tax returns if self-employed
- Property: Current council rates notice
- Existing loan: Most recent mortgage statement
- ID: Driver licence or passport
- Bank statements: 3 months of transaction history