Most Australians stay with their lender far too long. Banks rely on it — they reserve their best rates for new customers while quietly charging existing clients a loyalty tax. Here are five signs it is time to review your home loan.
The mortgage market moves constantly. Lenders reprice, new products launch, and cashback offers come and go. If you have been sitting on the same rate for more than a year without a review, there is a very good chance a better deal exists.
With the current lending environment, most competitive variable rates are well below what many existing borrowers are paying. If your rate starts with a 6 or above, it is almost certainly worth comparing.
When a fixed rate expires, most borrowers are automatically rolled onto their standard variable rate — which is rarely competitive. Start comparing at least three months before your fixed term ends.
A pay rise, a change in relationship status, or a significant increase in your property value can all open up better options. Lenders assess you based on your current circumstances.
Going directly to your bank means comparing one lender out of 60+. A broker comparison costs nothing and takes one conversation. The average saving on a $500,000 loan is $7,500 per year.