Is your home loan still competitive? Most home owners spend a lot of time comparing lenders and interest rates when they first take out a mortgage. But once the loan settles, it's easy to put it in the background and simply make the repayments each month.

The problem is that the home loan market doesn't stand still. Interest rates change, lenders introduce new products and special offers, property values fluctuate, and your own financial circumstances can change.

A home loan that was competitive two or three years ago might not be the best option for you today.

The good news? You don't necessarily need to refinance or change banks to get a better deal.

Here are five signs that it might be time to review your home loan.

1. You Haven't Reviewed Your Interest Rate in Over 12 Months

If it's been more than a year since you last checked your home loan interest rate, there's a chance you could be paying more than necessary.

Lenders regularly adjust their pricing, and the interest rate offered to new customers may differ from the rate you're currently paying.

What can you do?

A simple request to your existing lender for a better rate can make a difference. Give them a call, let them know you’re exploring home loan options and ask if they are prepared to offer you a discount.

If your lender isn't prepared to offer a competitive rate, it may be worth exploring other options. A home loan review can establish how your current interest rate & repayments compare with what's available in the market.

2. Your Property Has Increased in Value

If your property has increased in value since you took out your home loan, you may be in a stronger financial position than you realise.

As your loan balance reduces and your property value increases, your loan-to-value ratio (LVR) may improve.

Why does this matter?

Lenders often offer more competitive interest rates to borrowers with lower LVRs, particularly those who have built up at least 20% equity in their property.

For example, if you originally borrowed 90% of your property's value but now owe less than 80%, you may qualify for more competitive loan pricing.

What can you do?

Review your current property value and outstanding loan balance. You might discover that you've moved into a more favourable lending category, potentially opening the door to better interest rates.

3. Your Bank Is Offering Better Rates to New Customers

It's frustrating, but it happens.

You may have been a loyal customer of your bank for years, making every repayment on time, only to discover that new customers are being offered a better interest rate.

Banks compete aggressively for new business, and sometimes their existing customers don't automatically receive the same pricing.

But that doesn't mean you have to accept it.

What can you do?

Before going through the process of refinancing, it's worth asking your existing lender to review your rate.

As mortgage brokers, we regularly negotiate with lenders on behalf of our customers to see whether they're prepared to offer a better deal.

You might be surprised at what's possible simply by asking.

4. Your Home Loan No Longer Suits Your Lifestyle

A competitive home loan isn't just about having the lowest interest rate.

Your circumstances may have changed since you originally arranged your mortgage.

Perhaps you've changed jobs, started a family, received a pay rise, built up savings or are planning renovations.

Features that weren't important when you first took out your loan might now make a real difference.

For example:

• Offset accounts can help reduce the interest charged on your mortgage while keeping your savings accessible.
• Flexible extra repayments may help you pay down your loan faster.
• Redraw facilities can provide access to eligible additional repayments when needed.
• Loan splitting may allow you to combine fixed and variable interest rates.

Of course, these features can come with different fees, conditions and interest rates, so it's important to consider whether they're worth while for your circumstances.

What can you do?

Review whether your current loan structure still works for you. Sometimes restructuring your existing home loan can be just as valuable as securing a lower interest rate.

5. You're Paying More Interest Than You Need To

Even a relatively small difference in interest rates can have a significant impact over time.

Let's look at a simple example.

Imagine you have a $600,000 home loan with 25 years remaining.

Interest Rate 6.25% Monthly Repayment $3,958

Interest Rate 6.00% Monthly Repayment $3,866

‍Potential saving - $92 per month

That's approximately $1,100 a year in lower repayments, simply from a 0.25% reduction in your interest rate.

Example is indicative only, based on principal and interest repayments over 25 years, with no fees or rate changes. Actual savings will depend on your circumstances.

What can you do?

Compare your current loan with other available options,taking into account not just the interest rate but also fees, loan features,switching costs and the remaining loan term.

A lower interest rate doesn't automatically mean refinancingis the right decision, but it's certainly worth finding out.

Do You Need to Change Banks to Get a Better Deal?

Not necessarily — and this is something many homeowners don't realise.

One of the first things we do when reviewing a customer's home loan is look at whether their existing lender can offer a more competitive interest rate.

If they can, you may be able to benefit from a lower rate or a change in your loan facilities without the paperwork, costs or inconvenience of moving to another bank.

If they can't, we can compare your current loan against options from our panel of over 40 lenders to see whether refinancing could put you in a better position.

And if your current loan is already competitive? We'll tell you that too.

Our goal isn't to refinance your loan unnecessarily. It's to make sure your home loan continues to work for you.

When Was Your Last Home Loan Review?

Whether your home loan settled 12 months ago or six years ago, it's worth checking that you're not paying more than you need to.

At Assured Lending Mortgage Brokers, we believe our service doesn't end when your loan settles.

We provide ongoing support to our existing customers, including interest rate reviews, loan comparisons and advice when your circumstances change.

If you're not already a customer, we'd be happy to review your current home loan and see whether there may be an opportunity to improve it.

As experienced mortgage brokers, we can help you understand your options and make an informed decision about your home loan.

A loan review costs nothing but could save you thousands.

You don't have to wait until you're unhappy with your bank or struggling with repayments to review your mortgage.

Sometimes, a quick conversation is all it takes to identify an opportunity to save.

Contact Assured Lending Mortgage Brokers today for a homeloan review and find out whether your current loan is still competitive.

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