Don’t become complacent about your home loan

Don’t Become Complacent About Your Home Loan

Mark Stevenson, Managing Director at Bell Partners Finance (now Evolve Lending & Finance) wrote for The Western Weekender in August 2021 with a timely reminder for mortgage holders: low interest rates are not a reason to stop paying attention to your loan.

With the RBA cash rate at historic lows and widely expected to stay there for some time, it was easy for borrowers to assume their existing home loan was performing well enough. But as Mark pointed out, the gap between the best and worst rates on offer across lenders could represent thousands of dollars in unnecessary interest over the life of a loan, regardless of where the official rate sits.

The first step for any borrower is simply to ask their lender for a better deal. But Mark was clear that working through a broker typically delivers a stronger outcome than a direct call. Experienced brokers know the right contacts within lending institutions, understand which levers to pull, and can escalate requests in ways that individual customers simply cannot. If the existing lender will not move, a broker can identify and facilitate a move elsewhere.

At the time, the refinancing market was highly competitive. Around 25 lenders were offering cashback incentives ranging from $1,000 to $5,000, and 20 of those had advertised rates under two per cent. This combination of low headline rates and cash incentives to cover switching costs meant the barriers to refinancing were lower than they had been in years.

Mark also offered a practical tip for making a future switch easier: keep personal banking separate from the home loan. This avoids the disruption of needing to change everyday accounts when refinancing, making the process considerably smoother.

Your home loan deserves regular attention, not just when rates make news. Contact Evolve Lending & Finance to make sure you are getting the best deal available.