Is Your Home Loan Still Working for You? A Friendly Guide to Refinancing

Here's a question I ask almost everyone I meet: When did you last look at your home loan?

For a lot of people, the honest answer is "when I signed up for it." Completely understandable. Life gets busy, the repayments go out automatically, and the loan just ticks along in the background.

But your loan was chosen for the person you were when you took it out. Your life has probably moved on since then. It's worth checking whether your loan has too.

The "loyalty tax"

You might have heard this term. It describes a situation where existing customers end up on a higher rate than new customers get offered for a similar loan. It doesn't happen with every lender or every loan, but it's common enough that a regular review is a smart habit.

Sometimes a quick conversation with your current lender is enough to improve things. Sometimes moving to a different lender makes more sense. Either way, you won't know until you look.

Signs it might be time for a review

• You haven't reviewed your rate in a year or more
• Your fixed-rate period is ending (or recently ended)
• Your property may have grown in value
• Your income or family situation has changed
• You're juggling several debts and want to simplify
• You want features you don't currently have, like an offset account or redraw
• You're thinking about renovating or investing

It's not just about the rate

A lower rate is lovely, but it's not the whole picture. When I help clients look at refinancing, we also think about:

• Costs to switch: discharge fees, application fees, government fees, and, for fixed loans, possible break costs. These can add up, so we compare them against any savings.
• Loan features: Will you actually use an offset account? Do you want the flexibility of extra repayments?
• Loan term: Refinancing can reset your loan term. Lower repayments over a longer period can mean paying more interest overall, so we look at this carefully.
• Debt consolidation: Rolling car loans or credit cards into your mortgage can lower monthly repayments, but spreading short-term debt over a long home loan can cost more in the long run. We'll talk through the trade-offs honestly.

As a broker, I'm legally required to act in your best interests. If refinancing won't leave you better off, I'll tell you. Sometimes the right advice is "stay where you are."

What the process looks like

1. A chat about your goals. What do you want your loan to do for you?
2. A look at your current loan. Rate, features, fees, any fixed periods.
3. Comparing options. I'll research lenders on my panel and explain the pros and cons in plain English.
4. The application. I'll handle the paperwork and keep you updated all the way.

Let's give your loan a check-up

Think of it like a health check (the nurse in me can't help it!). A quick review now could help make sure your loan still suits your needs. If you're anywhere around Gosford, Terrigal, Erina, Kincumber, Saratoga or beyond, get in touch and let's take a look together.

General information only. All loans are subject to lender approval, terms and conditions. Fees and charges may apply when refinancing.

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