Lower Monthly Repayments
A lower repayment can reflect a longer term — check the total cost.
Existing home-loan customers often pay meaningfully more than new customers at the same bank — the so-called 'loyalty tax'. A rate review across a wide lender panel, followed by either a repricing at your existing lender or a switch, can quietly bring monthly repayments down.
Things to consider
- A lower rate only pays off if it more than covers switching costs within a reasonable time — that's what the break-even calculator is for.
- Beware resetting a loan back to a fresh 30-year term at a lower rate — the monthly drop can hide a much higher total interest bill.
- Sometimes a threat to leave is enough to unlock a repricing at your current lender — no switch required.
- The comparison rate is a useful (imperfect) way to compare total cost across loans.
Related equity uses
Three more ways homeowners commonly put usable equity to work.
Unlock an Offset Account
How offset accounts may reduce interest without changing the loan.
Switch to Fixed or Split
The trade-offs between rate certainty and flexibility.
Remove Lender's Mortgage Insurance
When LMI may apply, and how a changing LVR can affect it.
Explore whether using your home loan for this purpose may be appropriate — a Mortgage Freedom Review can help you understand the potential effect on repayments, total interest and your estimated mortgage-free date before you decide.
Results are estimates based on the information provided and stated assumptions. Savings, rates, approval and earlier repayment are not guaranteed. Credit approval, valuation, lender criteria, fees and product terms apply. Refinancing may not be suitable for everyone.
Submitting an initial enquiry for a Mortgage Freedom Review does not itself lodge a loan application. If a credit report or formal application may be required later, the responsible mortgage broker will explain the proposed step and obtain the necessary authority or consent.