Most Australians set up their home loan and don't look at it again. Years pass, interest rates shift, and new loan products hit the market — but the repayments just keep going out, month after month, without question. The reality is that a large number of borrowers are paying more than they need to. The good news? It's fixable.
When should you review your home loan?
A common rule of thumb is to review your home loan every two years, or whenever there's a significant change in your circumstances — a pay rise, a new financial goal, or a shift in the market. But in practice, most people only do it when the pain becomes obvious. Refinancing doesn't have to be reactive. The borrowers who consistently get good outcomes are the ones who treat their loan like a subscription they're willing to cancel if something better comes along.
What to look for when comparing loans
When you start comparing options, the interest rate is the headline — but it's not the whole picture. Here's what actually matters:
- The comparison rate, which factors in fees and gives you a truer cost of the loan
- Offset account access, which can significantly reduce the interest you pay over time
- Redraw facility flexibility, so you can access extra repayments if you need them
- Break costs and exit fees if you're currently on a fixed rate
Even a 0.5% rate reduction on a $600,000 loan can save you over $3,000 per year. Multiply that across a 30-year term and the compounding effect is substantial. The question isn't whether it's worth reviewing — it's whether you have the right information to make that call.
How a broker can help
This is where working with a broker changes the equation. A broker has access to dozens of lenders simultaneously and can run your numbers against the current market in minutes. They're not tied to any single bank's product range, which means their job is genuinely to find what works best for you — not to hit a sales target. At DO Financial, we work with over 44 lenders, and we do this at no cost to you. Our service is paid by the lender, not by you.
If you haven't looked at your home loan in the last two years, there's a real chance the market has moved in your favour and you haven't moved with it. A short conversation with one of our brokers costs nothing and could save you thousands. That's a trade-off worth making.