For many Australians, a home loan is the single biggest financial commitment they will ever take on. Yet, despite its importance, most borrowers rarely review their mortgage after signing the initial contract. The assumption is that if you make repayments on time, everything will take care of itself. Unfortunately, that mindset often costs borrowers tens of thousands of dollars.
The Changing Market
Interest rates don’t stand still. Over the past two years, the Reserve Bank of Australia has adjusted the cash rate multiple times, and lenders have followed with changes to their mortgage products. New customers are often offered lower rates to attract business, while existing customers are quietly left on higher rates. The result? Borrowers who don’t review their loans end up paying far more than they need to.
A Tale of Two Clients
To illustrate, consider two homeowners with the same loan balance of $750,000.
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Client A chose to remain with their bank on an interest rate of 6.89%. Their monthly repayment came to around $5,035, which translates to more than $51,000 per year in interest. Over five years, Client A paid more than $250,000 in interest alone.
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Client B, on the other hand, requested a financial health check and refinanced to 5.99%. Their monthly repayment dropped to around $4,555, reducing their annual interest bill to about $45,000. Over the same five-year period, Client B saved more than $30,000 compared to Client A.
Both clients started in the same position, but one simple decision created a dramatically different financial outcome.
Why Banks Won’t Tell You
It’s important to recognise that banks are under no obligation to offer you a better deal. In fact, it is in their interest to keep you on a higher rate for as long as possible. Unless you take the initiative to review your loan, you are effectively subsidising the bank’s profit margins.
What You Can Do
A regular loan review—ideally every 12 to 24 months—can help identify whether refinancing or restructuring is right for you. Even a modest reduction of 0.50% in your interest rate can translate into thousands of dollars saved each year. Beyond the immediate cash flow benefits, these savings can be redirected towards building long-term wealth, reducing debt faster, or simply easing household pressure.
At SW Global Finance, we offer a free financial health check to assess your current loan structure and explore opportunities for improvement. Our goal is straightforward: to help you stop overpaying and start taking control of your financial future.
Final Thought
Loyalty may be admirable in many areas of life, but when it comes to your mortgage, it can be extremely costly. The numbers prove it. The only question is whether you choose to act.
Call/WhatsApp: +84 96 275 92 07
Email: support@sw-globalfinance.com.au