The end of the financial year has a way of making people pay attention to their money. Tax returns, super contributions, budget reviews – it all lands in the same window. But there’s one thing most Australians forget to check while they’re in that financial headspace: their home loan.
If you haven’t reviewed your rate in the last 12 months, EOFY is as good a prompt as any. Your circumstances may have changed. The lending market has certainly moved. And the loan you settled into might not be the most competitive option available to you now.
Why the End of the Financial Year Is a Smart Time to Review Your Home Loan
EOFY is a natural reset point. It’s when most people pause to take stock of where their money is going – and your home loan is likely your biggest monthly expense. Reviewing it now means you head into the new financial year on the front foot, rather than carrying a rate that no longer reflects what’s available in the market.
According to the MFAA’s latest Industry Intelligence Report, 74.1% of all new residential home loans in Australia are now written by mortgage brokers. Part of the reason is that borrowers are increasingly aware that what their bank offers isn’t necessarily what’s available. EOFY is when that awareness tends to sharpen.
A review doesn’t have to mean switching lenders. Sometimes it confirms your loan is already competitive. But you won’t know that without checking.
What Does "Reviewing Your Home Loan" Actually Mean?
A home loan review is a straightforward process. Your broker looks at your current loan – the rate, the features, the structure – and compares it against what’s available across the lender market. If there’s a meaningfully better option, they’ll explain what switching would involve. If your current loan is holding up, they’ll tell you that too.
The process typically covers:
- Your current interest rate. Is the rate you’re on still competitive? Rates shift over time. If your loan has been running for two or more years without a review, there’s a reasonable chance the market has moved.
- Your loan features. Are you actually using the features you’re paying for? An offset account you’re not using, or a fixed rate that no longer suits your situation, can cost you more than it saves.
- Your borrowing position. Has your property increased in value? Have you paid down a meaningful chunk of the loan? Changes in your Loan-to-Value Ratio (LVR) – the percentage of the property’s value you’re borrowing – can open up better rates or remove the need for Lenders Mortgage Insurance (LMI) that might have applied earlier.
- Your life circumstances. Income changes, a growing family, plans to renovate or invest – any of these can mean a different loan structure suits you better now than it did at settlement.
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How Much Could You Actually Save by Refinancing?
The honest answer is: it depends on your loan size, your current rate, and what’s available. But the numbers can add up quickly.
Switching from a 6.5% rate to 5.9% on a $600,000 loan saves approximately $234 per month, or around $2,800 per year. Over a five-year period, that’s more than $14,000 – before accounting for any additional rate improvements over that time.
Use our mortgage refinance calculator to run your own numbers based on your actual loan balance and rate. It takes about two minutes and gives you a starting point for the conversation.
The costs of switching – including any discharge fees and loan establishment fees – are real and worth factoring in. Your broker will do that calculation for you and tell you honestly whether the switch makes financial sense given your situation.
Are There Risks or Costs to Refinancing?
Refinancing isn’t always the right move. Here’s what to weigh up:
Factor | What to Consider |
Discharge fees | Your current lender will charge a fee to close the loan, typically $160-$350 on average |
Establishment fees | The new lender may charge an application or settlement fee, typically $0-$348 – many banks waive this entirely |
Break costs | If you’re on a fixed rate, exiting early can trigger break costs – sometimes significant ones |
LMI | If your equity has dropped or you’re borrowing at a higher LVR, LMI may apply again |
Loan term reset | Refinancing to a new 30-year loan can extend your total repayment period if you’re not careful |
A broker works through all of these before recommending a switch. The goal isn’t to refinance for the sake of it. It’s to make sure your loan is genuinely working as hard as it can for your situation.
For a deeper look at how fixed versus variable rates compare right now, our guide to fixed vs variable rate mortgages is worth reading before your review.
Is EOFY the Right Time If Your Rate Is Fixed?
If you’re currently on a fixed rate, EOFY might still be a useful moment to review – even if switching isn’t an option right now.
Fixed rates typically lock in for one to five years. If your fixed term is expiring in the next three to six months, now is exactly the right time to plan your next move. When a fixed rate expires, your loan usually reverts to the lender’s standard variable rate, which may not be the most competitive option available.
Getting ahead of that expiry – ideally 60 to 90 days before it happens – gives you time to compare options without pressure. Your broker can help you understand whether to refix, move to variable, or consider a split loan structure that combines both.
What If You're Happy With Your Current Lender?
You don’t have to switch lenders to get a better deal. Sometimes a loan review leads to a retention offer from your existing lender – a rate reduction to keep your business. Lenders know that a borrower who has done their homework and come back with a competing offer is more likely to follow through.
The key is to have that conversation with a broker first. Walking into a negotiation knowing what the market looks like puts you in a much stronger position than just asking nicely.
Our refinancing service covers both paths: switching lenders and negotiating with your current one. The right outcome depends on your numbers, not on any preference for or against a particular lender.
A broker review typically takes one conversation of 30 to 45 minutes, followed by a few days for the broker to compare options and come back with recommendations. If you decide to proceed with a refinance, the full process usually takes three to six weeks from application to settlement, depending on the lender.
A formal credit application will result in a credit enquiry on your file. However, a broker can often provide a strong indication of your options through a soft assessment before any formal application is made. It’s worth discussing this with your broker before proceeding.
It can, if you refinance to a new 30-year loan. However, you can refinance to match your remaining loan term – for example, if you have 22 years left, you can refinance to a 22-year loan rather than starting the clock again. Your broker can structure this to suit your goals.
Potentially less so, because the savings on a smaller balance are smaller. But loan features and flexibility can still matter even on a smaller balance. Your broker will run the numbers and give you an honest answer.
For most home loan refinancing, there is no cost to the borrower. Borro is paid a commission by the lender if and when a loan settles. The initial review and recommendation is provided at no charge.
This article is general information only and does not constitute financial advice. Your personal circumstances may differ. Talk to your broker about your specific situation.
Sources: MFAA Industry Intelligence Report; RBA cash rate data.
