Most Australians set and forget their home loan. They sign on the dotted line, start making repayments, andnever look at their rate again — until they accidentally see what their bank is now offering new customers.
The uncomfortable truth? Loyal customers are almost always on worse rates than new ones. If you haven't reviewed your mortgage in the last two years, there's a very real chance you're paying more than you need to.
Here are five signs it's time to have a conversation about refinancing.
Interest rates have moved significantly over the past few years. If your home loan rate starts with a 6 —or higher — and you're not on a fixed rate with a specific reason for it, it's worth getting a comparison done. With access to over 70+ lenders, a broker can often find a meaningfully sharper rate in a matter of days.
Even a 0.5% reduction on a $600,000 loan saves approximately $3,000 per year. Over five years, that's $15,000 in your pocket rather than your bank's.
If you locked in a fixed rate during the low-rate era and that term is coming to an end, you're about to roll onto your lender's standard variable rate — which is rarely their best offering.
The window before your fixed rate expires is the ideal time to review. You can assess whether to refix (and at what term), switch to variable, or move to a new lender entirely. Leaving it until after the expiry date means you've already been rolled onto a less competitive rate.
Changed jobs? Increased your income? Paid off a debt? Had a child? All of these affect your financial profile — and potentially your borrowing power and the loan structure that suits you.
A loan that made sense five years ago might not be the right structure today. Refinancing isn't just about chasing a lower rate; it's about making sure your loan fits your current life.
If your property has increased in value since you bought it, you may be sitting on equity you can put to work —for renovations, an investment property deposit, or debt consolidation.
Refinancing to access equity is a strategic move when done with the right advice. The key is structuring it correctly so you're not inadvertently increasing your financial exposure unnecessarily.
If your lender hasn't proactively reached out to review your loan, don't take that as a sign everything is fine. Lenders have little incentive to offer existing customers better deals unless prompted.
At Lend Local Co, we do a free annual loan health check for all our clients. We compare your current rate to what's available in the market, flag any better options, and handle thepaperwork if switching makes sense. No cost, no obligation.
There are costs involved inrefinancing — including settlement fees, potential exit fees from your current lender, and government charges. These need to be weighed against the savings you'll make.
In most cases where refinancing is the right move, the break-even point (where your savings outweigh the switching costs) is reached within 12–18 months. We walk you through these numbers beforeyou make any decision.
Book a free chat with the Lend Local Co team → See how our refinancing service works →
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