For many homeowners in Geelong, a home loan is something that’s arranged once and then rarely looked at again.
But just because your loan was competitive when you first took it out, doesn’t mean it still is today.
Interest rates change. Lenders introduce new products. Your financial circumstances evolve. That’s why reviewing your home loan regularly can make a significant difference over the life of your mortgage.
Recently, I worked with a client whose refinance demonstrates just how powerful a simple home loan review can be.
The Client’s Situation
The client had:
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- Home loan balance: $350,000
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- Interest rate: 6.58% p.a.
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- Loan term remaining: 24 years
Like many borrowers, they were comfortably making their repayments and hadn’t questioned whether their loan was still the most suitable option.
After completing a refinance review, we identified an opportunity to secure a more competitive interest rate.
The Refinancing Outcome
By refinancing their home loan, we were able to reduce their interest rate to 5.99% p.a., while keeping the remaining loan term at 24 years.
The immediate result was a reduction in their required monthly repayment of approximately $130 per month.
For many people, that’s where the conversation ends.
But this is where the strategy becomes even more valuable.
Don’t Spend the Savings Use Them to Your Advantage
Rather than reducing their repayments, I recommended the client continue paying the same amount they had been paying before refinancing.
Because the required minimum repayment had decreased, that additional $130 each month went directly towards reducing the loan principal.
This creates a compounding benefit over time:
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- You reduce your loan balance faster.
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- Less interest is charged over the life of the loan.
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- More of every future repayment goes towards paying off your mortgage rather than interest.
Sometimes the most effective financial strategies aren’t about paying more—they’re about making your money work smarter.
The Long-Term Result
By refinancing and maintaining their previous repayment amount, the projected outcome was:
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- Around $40,000 saved in interest
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- Mortgage paid off approximately three years sooner
That’s the power of combining a lower interest rate with a simple repayment strategy.
Should You Refinance Your Home Loan?
Refinancing isn’t the right solution for everyone, but it’s worth reviewing your options if:
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- Your interest rate hasn’t been reviewed in several years.
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- Your fixed-rate period is ending.
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- Your financial circumstances have changed.
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- You’re looking to reduce your repayments.
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- You’d like to pay off your home loan sooner.
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- You want to consolidate debt or access equity.
Every lender assesses applications differently, and there are often opportunities available that borrowers aren’t aware of.
Looking for a Mortgage Broker in Geelong?
As a mortgage broker in Geelong, I help clients compare home loan options from a wide range of lenders to find solutions that suit their individual goals and circumstances.
Whether you’re:
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- Buying your first home,
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- Refinancing an existing mortgage,
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- Investing in property, or
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- Simply wondering whether you’re paying too much,
a home loan review can help you understand what’s available and whether changing lenders could improve your financial position.
Home Loan Reviews Can Make a Big Difference
One of the most common questions I hear is:
“Is it really worth refinancing?”
Sometimes the answer is no.
But sometimes, as this example demonstrates, a review can uncover opportunities to save thousands of dollars over the life of your loan.
You won’t know until you ask.
If you’re looking for home loans in Geelong, refinancing in Geelong, or simply want to know whether your current mortgage is still competitive, I’d be happy to have a conversation and explore your options.
Ready to Review Your Home Loan?
If it’s been more than two years since your mortgage was last reviewed, now could be the right time to see whether your home loan is still working as hard as you are.
Book a chat with Rhys Hultgren
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
