Start with the purpose of the review
Asking for a better interest rate is sensible. But the rate is only one part of a home loan. A broader review can reveal whether the existing structure still suits the way the loan is being used and what is likely to happen next.
That does not mean every review should result in refinancing. Sometimes the most useful outcome is repricing with the current lender, changing the repayment strategy, or simply confirming that the current loan remains competitive for the features it provides.
Questions worth putting on the table
A broker review can explore the following before a recommendation is made:
What is my remaining loan term?
Do not compare a new 30-year loan with an existing loan that has only 15 or 20 years remaining without showing the effect on total interest.
What will it cost to move?
Ask about known discharge, establishment, valuation, settlement and fixed-rate break costs, not just the new rate.
Can my current lender improve the rate?
A repricing request can sometimes improve the existing loan without the cost and administration of a full refinance.
Do I still need my current features?
Offset, redraw, fixed/variable splits, repayment flexibility and package arrangements may influence the comparison.
Will I keep the same repayment?
If the rate falls and you continue paying the old repayment amount, the loan may be repaid sooner and with less interest.
Am I taking cash out or consolidating debt?
Separate new borrowing from the like-for-like refinance so the true refinance saving is visible.
Could LVR or LMI affect the switch?
The property's current value and loan balance may influence lender pricing, eligibility and potential mortgage insurance.
What are my next property plans?
An upcoming investment, renovation, construction project or sale may make loan structure more important than a small short-term rate saving.
How will an offset transfer work?
If a large offset balance exists, make sure the transition is planned so cash is not accidentally treated as part of the loan payoff or left unproductive.
Are promotional offers changing the comparison?
Cashback or other promotions are temporary. Compare the underlying loan cost and structure as well.