HOME > BLOG > Refinancing > When is the right time to check up on your home loan?

Just like your health, it is important to regularly check up on your home loan to ensure that it is working for you to achieve your goals. If you don’t review your home loan you may be paying too much in interest or you may not be using the interest saving features of the loan to their full benefit.


It doesn’t matter if you’ve had your home loan for one or 10 years, it can be extremely beneficial for you to do regular check-ups on your mortgage. So, what signs should you look out for?

When the interest rates change

Often when the RBA changes the cash rate, it prompts borrowers to check in on what their current interest rates is and look around at what is on offer. Keep in mind that interest rates don’t reduce straight away.

It can often take a few weeks for lenders to make the change as there are a number of processes to go through. So if you are considering refinancing to another lender, make sure you wait at least a couple of weeks after the RBA announcement for the reduced rates to be advertised.

The fixed period is nearly over

This is the perfect time to review your home loan as your repayments are most likely going to change. Usually, when the fixed period ends, the interest rate reverts to the standard variable rate which may not be as competitive as the fixed rate you initially secured. It is the perfect time to shop around to see what variable rates are on offer and compare then with the variable rate that your loan is reverting to.

Interest only period due to expire

Most lenders will restrict your interest only period to a certain number of years and not the full term of the loan. If it is an investment property you may want to continue interest only past this time. When you are coming up to the expiry, contact your existing lender to see if they will extend it, if not you probably need to refinance to continue on an interest only basis. It is a great opportunity to see what rates are available that could save you interest and increase the return on your investment.

Have too many other debts

If you find that you are struggling to meet multiple repayments on other debts, such as a personal loans and credit cards, you may be able to save money on interest by consolidating your debt into your home loan. This way, you will only have to worry about one repayment and if you fast track getting it paid off, you may save on interest as well.

Haven’t checked the loan in a number of years

It is easy to become complacent with your home loan and just let the repayments regularly come out of your account. From time to time new lenders enter the market, existing lenders release new home loan products or there are special offers to attract new business. By keeping an eye on the market you will know if your home loan is competitive and may snare a super deal. Tag a comparison rate site or make sure you are on the mailing list from your lender so that you are up to date on all the latest. At the very least, you should try to review your home loan every 2 years.

Your circumstances have changed

If your income increases or your expenses reduce, it might give you extra motivation to see how quickly you can pay off your home loan. Combining paying extra with securing a lower rate could see the time it takes to pay off your home loan reduce by a number of years. Do your research and compare your home loan with others on the market. You may find that there are other options available that are more flexible, with a lower interest rate and interest savings features like an offset account to deposit your extra savings.

If you want to keep your finances healthy, then you need to regularly check up on your financial commitments and keep an eye out for any signs that may indicate they need a check-up. Also, chat with an expert who has an understanding across the entire home loan market.

Did you know that State Custodians has access to 25+ lenders on our lending panel? If you have a loan with another lender, you can see how it stacks up against other loans, including State Custodians. Give our Lending Specialist team a call on 13 72 62 or leave your details here and they will give you a call.