Most people set up their home loan and then don’t look at it again for years. That’s understandable, but loans that aren’t reviewed can drift out of step with the market. Here are five signs it may be worth a closer look.
1. You haven’t reviewed your loan in two years or more
Lenders often keep their sharpest offers for new customers. If your loan has been sitting untouched, there’s a reasonable chance something more suitable is available, either with your current lender or a different one.
2. Your fixed rate is about to end
When a fixed term finishes, your loan usually rolls onto the lender’s standard variable rate. It’s worth comparing your options a couple of months beforehand, so you’re not deciding in a hurry.
3. Your home has gone up in value
If your property is worth more and your loan is smaller than when you started, your loan-to-value ratio has improved. Some lenders price loans more favourably at lower ratios.
4. You’re juggling several debts
Combining a car loan, personal loan or credit cards into your home loan could lower your total monthly repayments. Be careful, though: spreading short-term debt over a long home loan term may mean paying more interest overall. Our debt consolidation calculator shows both sides.
5. Your loan no longer fits your life
Maybe you’d now benefit from an offset account, or want to split between fixed and variable. Features matter as much as the rate.
What does refinancing cost?
Typical costs include a discharge fee from your current lender, government registration fees, and sometimes application or valuation fees. Fixed-rate loans can also have break costs. A good comparison weighs these against the possible benefit. Try the refinance calculator for a rough idea.
The next step
A review doesn’t commit you to anything. If your current loan is already competitive, we’ll tell you. Book a free 15-minute chat and we’ll take a look.
This article is general information only and doesn’t take your personal circumstances into account.