Lenders often reserve their sharpest rates for new customers. If you've been with the same lender for a few years, there's a fair chance your rate has drifted above what's on offer elsewhere — a gap that can add up to thousands of dollars a year.

Signs it may be time for a review.

  • You haven't reviewed your loan in over a year. The market moves constantly, and loyalty is rarely rewarded automatically.
  • Your fixed rate is ending. When a fixed period ends, loans usually revert to a standard variable rate that may not be competitive.
  • Your property has increased in value. A lower loan-to-value ratio (LVR) can unlock better pricing, or remove the need for LMI on future borrowing.
  • Your circumstances have changed. A pay rise, new job, growing family or plan to renovate or invest are all good reasons to revisit your structure.
  • You're juggling other debts. Consolidating high-interest personal loans or credit cards into your home loan can simplify things — though stretching short-term debt over a long term can cost more overall, so it needs careful thought.
  • You want better features. An offset account, redraw or the ability to split between fixed and variable can make a real difference.

Count the costs of switching.

Refinancing isn't free, so the savings need to outweigh the costs. Common ones include:

  • Discharge fees from your current lender
  • Government mortgage registration and discharge fees
  • Break costs if you're leaving a fixed-rate loan early — these can be significant
  • Application or valuation fees with the new lender (often waived)
  • LMI if you're borrowing more than 80% of the property's value

Some lenders offer cashback or fee waivers that can offset these costs, but don't let a cashback offer distract from the rate and features you'll live with for years.

Tip: Before switching, ask your current lender for a better rate. Sometimes a quick call is enough. If they won't move, we'll compare the market for you.

What about keeping your repayments the same?

If you refinance to a lower rate but keep making the same repayments, the extra goes straight off your principal, so you could pay off your loan years sooner. Be wary of resetting to a fresh 30-year term without a plan, which can lower repayments but increase the total interest you pay.

How we help.

We'll run a free loan health check: comparing your current rate and features against the market, calculating the full cost of switching, and showing you the bottom-line difference. If staying put is the better option, we'll tell you.

This article is general information only and does not consider your objectives, financial situation or needs. Consider whether it's appropriate for you and seek personalised advice before acting.