Harry Bozin provides advice to consider when reassessing your home loan. Image – Canva.
  • Harry Bozin says it is a good habit to review your home loan every year or two
  • After all, market and circumstances change
  • Along with rates and fees, borrowers should consider different offset accounts and flexible payments

Reviewing your home loan every year or two is a good habit to get into.

As the market and your circumstances change, the home loan that was right for you previously, may no longer suit you now. You may be looking to save some money, consolidate your debt or unlock equity you’ve built up in your home.

Whatever your reasons, it’s a good idea to see what’s out there on a regular basis. But you should also bear in mind the long term costs of increasing your borrowings.

Lower Rates and Fees

Obviously the first question to ask is, could you be paying less? A loan with a lower interest rate or less fees can be the simplest way to reduce your repayments. It means you can unlock a little more spending money, or better still, pay off more of your principal to pay the loan back sooner.

More Features

But it’s not all about interest rates. Sometimes the loans with the lowest rates also sacrifice features that are not only more convenient, but also save you money in the long run.

For example:

Offset Account – This is a separate account that lets you use the balance to offset the principal on which your interest is calculated. Simply having your income deposited into this account can take time off your loan.

Flexible Payments – Paying extra money into the loan if you have it is a great way to shorten your loan and save more in the long run.

Redraw – This lets you easily access any extra funds you’ve deposited into your loan.

Flexible Rates – Depending on what you think rates are going to do (go up, down, or stay the same), you can choose the type of loan that could save you money when they go down, or protect you if they rise.

Of course, each lender will have its own terms and conditions, and it is important to consider the effects of these rules when choosing a loan.


Before making any financial decisions, please do your own independent research, taking into account your own situation. This article does not purport to provide financial or investment advice. See our Terms of Use.

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