Client story · Refinance
Refinancing a Hills District Home Loan and Cutting Repayments by $480 a Month
This family had been with the same bank for years and assumed they were getting looked after. They weren't. A quick review found they were paying well above what their profile could get elsewhere.
$480
lower repayments per month
$5,700
roughly saved per year
40+
lenders compared
The situation
They had a home loan of about $720,000 on a place they'd owned for around six years. Life was busy, two kids and two jobs, and the loan had just ticked along in the background. When their rate crept up again they finally asked the question most people put off: am I actually paying too much?
The short answer was yes. Their existing lender had quietly let their rate drift, which is something I see constantly. Loyalty rarely gets rewarded. New customers often get a sharper deal than the people who have been there for years.
What I looked at
- Their current rate, repayments, and any fixed portion or exit costs, so we knew the true cost of moving.
- Their equity position. With six years of repayments and some growth, they had comfortable equity, which opens up sharper pricing.
- A shortlist from my panel of more than 40 lenders, matched to their income, spending, and the loan size.
- Whether an offset account made sense for them, given they usually keep a cash buffer sitting in savings.
The result
We moved them to a lender whose pricing suited their situation and set the new loan up with an offset account. Their repayments dropped by roughly $480 a month, which is around $5,700 across a year, and they kept their loan term rather than stretching it back out. I also asked them to keep paying the old, higher amount where they could, so the saving works to knock down the balance faster instead of just freeing up cash.
One thing I'm always upfront about: refinancing isn't automatically the right move for everyone. If you have very little equity, a switch can trigger lenders mortgage insurance again, which can wipe out the gain. If you're partway through a fixed term, there can be break costs. And stretching the loan back out to 30 years to lower the monthly figure can quietly cost you more over time. For this family none of those traps applied, which is why the numbers stacked up so cleanly. I check all of that before I ever suggest moving.
The cost of doing nothing
A rate that looks fine can quietly cost you thousands a year. It costs nothing to check. If you haven't reviewed your loan in the last two years, it is worth a look at refinancing.
I felt a bit silly for not checking sooner. Victor made it painless and the saving is real. It shows up every single month.
Frequently asked questions
Does refinancing cost me anything?
There can be small government and lender fees, and I factor those in before we move so the change is genuinely worth it. My service is free to you in almost all cases. Book a quick call and I'll run the numbers on your loan.
Will refinancing hurt my credit score?
A single application leaves a normal enquiry on your file, which is minor. The problem is applying to lots of lenders at once. I only submit to the lender that genuinely fits, so we avoid that.
Important information
This information is general in nature and does not take your personal objectives, financial situation, or needs into account. It is not credit assistance or a recommendation to enter into any particular credit contract. Consider whether it is right for you and seek advice before acting. Lending is subject to a lender's eligibility and approval criteria. Terms, conditions, fees, and charges apply. Client details are shared with permission and may be anonymised. Individual results depend on your circumstances.
Greenwood Finance · ABN 23 671 049 693 · Credit Representative No. 551942.
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