How often should you review your home loan?
Most people spend more time researching a new phone than they do reviewing their home loan. And yet for the majority of Australians, a mortgage is the single largest financial commitment they will ever make. A small improvement in your rate or loan structure can translate to tens of thousands of dollars over the life of a loan - so it's worth paying attention.
The short answer: at least once a year. But there are also specific moments in life when a review becomes particularly important, regardless of when you last looked.
The Set and Forget Problem
When you first get a mortgage, the rate feels current and competitive - because it is. But the lending market moves constantly, and the sharpest deals are almost always reserved for new borrowers rather than existing ones.
This means that over time, loyal customers can end up paying more than someone who just walked in the door. It's not personal - it's just how the market works. A regular review ensures you're not quietly paying a premium for doing nothing.
Moments That Should Always Trigger a Review
Beyond an annual check, certain situations should prompt a review regardless of timing.
Your fixed rate is expiring: When a fixed term ends, most lenders roll you onto a standard variable rate - which is rarely their most competitive. Review your options at least 90 days before this happens, not after.
You haven't reviewed in more than two years: The market changes quickly. If it's been that long, the review is overdue.
You're thinking about renovating: A review can determine whether you can access equity in your property to fund it - often at a much lower rate than a personal loan.
You’re closing in on a new LVR bracket: As mentioned in an earlier post, LVR is important to a lender. If you think your property value has increased substantially, this might result in an instant 0.10% off your loan .
What a Review Actually Involves
A review with a broker starts with a conversation about your current situation - what you owe, what you're paying, and what your property is worth. From there, a broker can benchmark your rate against the market and identify whether refinancing makes sense after fees and costs.
The Cost of Doing Nothing
Inaction is expensive. Borrowers who never review often end up paying a loyalty tax that accumulates quietly in the background. Over a 30-year loan, the difference between a competitive rate and a mediocre one can add up.
A review costs nothing and takes very little time. The only question is whether what you find leads to action.
Not sure if you're on the right rate? Get in touch and we'll take a look at your current loan and compare it against what's available today.
