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.
Most Australian mortgage holders pay more than they need to. Lenders rely on borrower inertia - the tendency to stay with the same provider even when better options exist. If any of the following apply to you, it is worth having your rate reviewed.
Reserve Bank data consistently shows a gap between the average rate paid by new customers and the average rate paid by existing customers. Lenders price their best rates for new business. Loyal customers who stay without reviewing their rate quietly pay more, year after year.
On a $500,000 mortgage, a 0.5% rate difference costs $2,500 per year. A 1% difference costs $5,000 per year. Over five years without a review, the cumulative cost of inaction can exceed $20,000. Lendology reviews your rate against the current market across 60+ lenders - at no cost to you.
The most common response we hear from clients after their first rate review is: I wish I had done this sooner. The process takes less than an hour of your time and Lendology handles everything else.
Lendology does not recommend refinancing in every situation. There are genuine cases where staying with your current lender is the better decision - and we will tell you so.
The refinancing process is more straightforward than most people expect. Lendology handles the majority of the work - gathering documents, comparing lenders, submitting the application, managing the lender, and coordinating the discharge of the old loan and settlement of the new one.
From your first conversation with Lendology to having a new loan in place typically takes 4 to 8 weeks depending on the lender's turnaround. The discharge of your old loan and settlement of the new one happen simultaneously - there is no period where you have two loans active.
At minimum every 18 months. In a changing rate environment, every 12 months is better. Lendology contacts clients proactively when the market moves in a way that creates a refinancing opportunity.
Applying for a new loan creates a credit enquiry that temporarily reduces your score by a small amount. This effect is typically minor and short-lived. Lendology minimises unnecessary enquiries by identifying the right lender before submitting any application.
It depends on the severity and recency of the missed payments. Some specialist lenders accept applications with minor credit impairment. Lendology assesses your credit position before recommending a refinancing strategy.
Many lenders offer cashback deals of $2,000 to $4,000 to attract refinancers. These offers change frequently. Lendology factors current cashback offers into the true net saving calculation when comparing lenders.