Many homeowners set and forget their mortgage, not realising that rates and products change constantly. The Patels, a family of four in Point Cook, were paying far more than they needed to — and didn't even know it. A quick review changed everything.
The Situation
The Patels had taken out their home loan four years earlier when they purchased their family home. At the time, they got what seemed like a reasonable rate. But they hadn't reviewed their loan since, and in the years that followed, rates had shifted significantly. They were sitting on a $680,000 loan at 6.2% with their existing bank.
They came to us after a friend mentioned they had recently refinanced and were paying much less. The Patels were curious — could they be saving money too?
"We just assumed our rate was fine because it's a big bank. We had no idea how much we were overpaying until we saw the numbers."
What We Did
Conducted a Full Loan Health Check
We reviewed their current loan terms, interest rate, fees, and features. We also assessed their financial position to determine what they would qualify for in today's market. The gap between what they were paying and what was available was striking.
Found a Better Deal
We compared offers from our panel of lenders and found a product at 5.1% with a lender that also offered a $3,000 cashback for refinancing. The new loan had all the features the Patels needed — an offset account, redraw facility, and the ability to make extra repayments without penalty.
Handled the Switch
Refinancing can sound complicated, but we managed the entire process. We submitted the new application, coordinated discharge of the old loan, and ensured the transition was seamless. The Patels didn't have to deal with their old bank at all.
The Result
- Previous rate: 6.2% (hadn't been reviewed in 4 years)
- New rate: 5.1%
- Annual saving: Over $15,000 per year
- Cashback received: $3,000
- Monthly repayment reduction: ~$1,260 less per month
- Loan features: Offset account, redraw, flexible repayments
"We're saving over a thousand dollars a month — that's a family holiday every year just from switching our loan. We can't believe we waited so long."
Key Takeaway
If you haven't reviewed your home loan in the last 12 months, there's a good chance you're paying more than you need to. Lenders rarely offer their best rates to existing customers — they save those for new business. A refinance health check takes just a few minutes and could save you thousands every year. There's no cost and no obligation to switch.
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