The Annual Home Loan Health Check – A 30-Minute Habit That Saves Thousands

The Annual Home Loan Health Check – A 30-Minute Habit That Saves Thousands

Most homeowners set up their home loan once and forget about it. But banks don’t. They adjust rates, update products and quietly move loyal customers onto less competitive deals. That’s why a quick yearly home loan review can save you thousands — without changing your lifestyle.

This guide shows you what to check, why it matters and how to make this a simple 30-minute annual habit.

1️⃣ Why a Home Loan Health Check Matters

Your home loan isn’t “set and forget”. A lot can change in 12 months:

• Interest rates move.
• New lenders enter the market.
• Your financial situation evolves.
• Your equity increases as you pay down the loan.

If you’re not reviewing your loan regularly, you may be paying more than you need to.

2️⃣ Step 1: Check Your Current Interest Rate

Start by finding your current rate on your home loan statement or banking app.
Ask yourself:

• Does my rate start with a “5” or “6”?
• Have I checked what new customers are being offered?
• Am I still on the same product I signed up for years ago?

If your rate has drifted above competitive offers, you’re likely paying the “loyalty tax”.

Related post: The Loyalty Tax Explained

3️⃣ Step 2: Review Your Loan Features

Loan features can save or cost you money depending on how you use them:

• Offset account: Reduces interest if you keep money in it.
• Redraw: Flexible access to extra repayments.
• Split loan: A mix of fixed certainty and variable flexibility.
• Interest-only: Suits some investors, not ideal for owner-occupiers long-term.

If your current loan doesn’t match your goals anymore, it may be time to adjust.

4️⃣ Step 3: Update Your Financial Situation

Your borrowing position changes over time.
A quick check-up helps you understand whether you now qualify for:

• A sharper rate.
• A better product.
• A refinance or restructuring opportunity.

Have your income, expenses or debts changed? Lenders reassess all this during a refinance — knowing your numbers helps you prepare.

5️⃣ Step 4: Check Your Equity & Property Value

As you repay your loan and as property values shift, your equity position changes.
More equity can unlock:

• Lower interest rates.
• Refinance opportunities without LMI.
• Access to funds for renovations, investing or debt consolidation.

A quick valuation or broker check can show where you stand.

6️⃣ Step 5: Review Your Repayment Structure

Your repayment settings should reflect your goals:

• Principal & Interest: Best for reducing your loan quickly.
• Interest-Only: Helpful for investors managing cash flow.
• Extra repayments: Can cut years off your loan.

If your strategy has changed since you took out your loan, your repayments should too.

7️⃣ Step 6: Look for Better Deals in the Market

This is where the magic happens.

• Compare variable and fixed options from multiple lenders.
• Look at comparison rates, not just headline rates.
• Check cashback offers — but don’t let them be the only deciding factor.

Even a 0.25% difference can add up to significant savings.

8️⃣ Step 7: Decide Whether to Reprice or Refinance

You have two choices:

• Repricing: Ask your current bank for a better rate.
• Refinancing: Switch to a new lender offering a stronger deal.

Many homeowners start with a reprice request but ultimately refinance because new customer rates are usually sharper.

9️⃣ Step 8: Set a Yearly Reminder

A home loan health check only takes around 30 minutes.
Set a yearly reminder for:

• Your loan anniversary date.
• Start of financial year.
• Start of the calendar year.

Consistent reviews keep you ahead of rising rates and unnecessary fees.

🔟 The Smartest Way to Do Your Yearly Home Loan Health Check

If you want a quick, professional comparison:

• We check your current rate against the market.
• Review your borrowing position.
• Evaluate your equity and valuation.
• Show you exactly how much you can save.