Many Australians are paying more on their mortgages than they need to — not because they can’t access a better deal, but because they believe in outdated myths about home loans. These misconceptions keep borrowers tied to higher repayments and stop them from exploring smarter options.
Here are three of the most common myths we see, and the truths behind them:
Myth 1: “My bank will automatically lower my rate if market rates drop.”
The reality: Banks rarely reward loyalty. While new customers are offered promotional rates to attract business, existing borrowers are often left on higher rates. This so-called “loyalty tax” can cost borrowers tens of thousands of dollars over the life of a loan.
What to do instead: Proactively review your loan every 12–18 months. Compare your rate against current market offers. If you don’t ask, your bank won’t act.
Myth 2: “Refinancing is too complicated and not worth the effort.”
The reality: With the right broker, refinancing is straightforward. In most cases, the potential savings far outweigh the effort. Switching costs, if any, are often recovered within months through lower repayments.
What to do instead: Work with a finance professional who handles the paperwork, negotiations, and bank processes on your behalf. Refinancing could free up hundreds — even thousands — of dollars per month.
Myth 3: “Fixed rates are always the safest choice.”
The reality: Fixed loans provide certainty but come with limitations. They can lock you in, restrict extra repayments, and impose penalties if you want to switch. Variable loans, on the other hand, often provide flexibility and lower costs depending on market conditions.
What to do instead: Consider your financial goals. For some, a mix of fixed and variable loans offers the best balance of stability and flexibility. There is no one-size-fits-all answer.
The Bottom Line
Believing these myths benefits the banks — not you. By staying informed and reviewing your mortgage regularly, you can avoid unnecessary costs and take control of your financial future.
At SW Global Finance, our mission is to separate facts from fiction and guide clients toward smarter mortgage decisions. Whether you’re looking to refinance, restructure debt, or simply understand your options, we’re here to help.
Call/WhatsApp: +84 96 275 92 07
Email: support@sw-globalfinance.com.au
Stop paying for myths. Start paying less on your mortgage.