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  • Writer's pictureCameron Bird Property Group

5 Reasons To Review Your Mortgage

Updated: Dec 9, 2023



By reviewing your home loan you may be able to work out if you're paying too much, secure a better deal, and save yourself up to thousands of dollars in interest and charges, potentially shortening the life of your loan.


Written by experienced Finance Adviser and Mortgage Broker, Anthony Hurford, this article reveals four reasons why you should consider reviewing your mortgage, including:

  1. You could negotiate a cheaper interest rate

  2. An opportunity to consolidate your debts

  3. Discover new home loan features

  4. Tap into your properties' increased value

  5. Re-assess your renewed serviceability to prepare for your next property purchase


Five reasons to review your mortgage

Reason 1: You can negotiate a cheaper interest rate

If you can negotiate a cheaper interest rate you could be saving yourself thousands of dollars over the term of your home loan. You may also be able to reduce your repayments, which means you will have more disposable income each month. You could put this extra cash to good use and pay off your home loan much quicker, or just give yourself the freedom to indulge a little more.


Reason 2: An opportunity to consolidate your debts

If you refinance your mortgage, you could have a great opportunity to overhaul your finances and get any outstanding debt under control. You could have the opportunity to combine some of your debts (such as credit cards and personal loans) with your mortgage. This would mean that you have fewer repayments to maintain and an easier budget to manage.


This also presents you with a chance to review how often you make repayments. For example, if you have a salary that is paid either fortnightly or weekly, but your mortgage repayments are monthly, you can simplify your budget month-to-month by aligning your repayment cycle.


Reason 3: Discover new home loan features

If it has been a while since you last reviewed your home loan you may have missed the memo about new features in the market.


For example, 100% offset accounts and alternative fee structures could be of huge benefit to you, allowing you to reduce the cost of your mortgage, and enabling you to pay your home off much sooner than you’d expected.


Reason 4: Tap into your properties' increased value

If your home has risen in value, most lenders will allow you to access the equity you’ve built up over the years. This will come in handy if you’ve been waiting for the opportune moment to buy a new car, renovate your home or go on holiday. If you refinance, you could benefit from the increased value of your property.


Reason 5: Re-assess your renewed serviceability to prepare for your next property purchase

As your financial circumstances change for example you earn money or your expenses increase it can directly impact your serviceability. Serviceability is a borrower’s ability to make repayments on their home loan. Lenders calculate a borrower’s serviceability by looking at their income, expenses, and other factors. Your serviceability result will depend on the size of your proposed loan and your financial situation.


Anthony Hurtford

Director - Adviser Finance Brokers

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