Is It Time to Review Your Home Loan?

I know...you meant to get your home loan reviewed last year. And 2024. 23. 18. Etc.

Rates move. Policies change. Life evolves. But many home loans sit untouched for years, not because they’re perfect, but because reviewing them feels like effort. And effort gets deferred.

That’s familiar and convenient...but that's also still a decision; and often a costly one.

A calm review beats a rushed decision.

The myth of “I’ll deal with it later”

Refinancing has a reputation problem. People imagine paperwork, disruption, sales pressure or being pushed into something they’re not ready for. So, they stay put, assuming their current loan is probably fine. And it might be. But most likely, you could be far better off.

What I see regularly are capable, financially comfortable people who haven't reviewed their loans since they settled years ago. That kind of inaction could be appropriate when it's say, a set-and-forget investment or SMSF loan. But your home loan should adjust with you and your needs.

That's not criticism. Lawd knows I don't want to take the time to review my insurances or energy supplier, so I understand the mental wall that comes up when talking about property loans.

That's why you use a mortgage broker - because we do the work for you. And your bank sure as heck isn't going to call you and offer you a better rate (I've been a banker, it doesn't happen. Though if you ask nicely, they may think about it - give it a go and if no dice, let me know)!

Why doesn't your bank review your rate for you?

Your lender isn't obliged to check whether your loan still suits you. Once it’s written, it sits there quietly doing its thing.

That doesn’t necessarily mean you’re being overcharged. It means the structure, features and rate you’re on may no longer reflect:

• how your income looks today

• how much cash you hold

• how you use your offset

• what flexibility you need

• and what options are available today

Your bank isn't a demon (though I hear otherwise on occasion)...it's just how the world works.

Refinancing isn’t always about a lower rate, in many instances

A robust refinance conversation is not a rate hunt - It’s a review. Financial hygiene, I call it.

It’s understanding:

• whether your loan still fits your circumstances

• whether the structure is working for you or against you

• whether small changes could improve cash flow or flexibility

• whether staying put genuinely makes sense

  
  

Sometimes the outcome is staying where you are. Only with assurance, not assumption.

Why people who refinance often say “I should’ve done this earlier”

Of course, having more relaxed cashflow is normally the biggest upside. Being able to pay the bills on time is a wonderful thing!

Refinancing doesn’t have to be urgent to be worthwhile. It doesn’t mean upheaval. It just needs to be considered properly, by someone who understands all the options available to you.

If you haven’t reviewed your home loan in a while, or you’ve been meaning to but keep pushing it down the list, that’s usually the sign it’s time for a calm, intelligent review.

If that sounds useful, get in touch.

Not financial advice.