Buying your first home is a massive achievement. After months or even years of saving, searching, and planning, settling into your new home can feel like the final step in a long journey. But here’s the thing — signing your mortgage documents isn’t the end. In fact, it’s just the beginning of your financial relationship with your home loan.
Many first home buyers work hard to secure the best possible loan when they buy — but then they leave it untouched for years. While it’s easy to assume that your mortgage will quietly tick away in the background, savvy homeowners know better. Regularly reviewing your home loan can help you stay on track, reduce unnecessary costs, and make your money work harder.
So, how do you know when it’s the right time to check in on your home loan?
Review Your Mortgage Every Two Years
A general rule of thumb is to review your home loan at least every two years. Interest rates, products, and features are constantly evolving — what suited your circumstances last year may no longer be the best fit.
Regular review gives you the chance to ensure:
- Your interest rate is still competitive
- You’re not paying unnecessary fees
- Your loan features still match your needs
- You’re on track to reach your financial goals
Think of it like a health check — it doesn’t always mean something’s wrong, but it’s wise to stay on top of it.
Key Triggers to Review Your Home Loan
Additionally, there are specific moments in life when it’s especially important to take another look:
1. Two to Three Years After Taking Out the Loan
Many lenders offer attractive introductory rates to entice new borrowers — but these offers typically expire after a couple of years. Once that period ends, your rate may revert to a higher one, meaning you could be paying more than you need to. Mark your calendar for the two-year mark and take action before any rate hike catches you off guard.
2. When Interest Rates Drop
When the Reserve Bank of Australia (RBA) reduces the official cash rate, lenders often follow suit by lowering home loan rates. But unless you request a review, your lender won’t automatically offer you a better deal. If rates have dropped since you signed your loan, now’s the time to see if you could benefit.
3. Life Changes
Got a new job? Started a family? Changed income? Had a divorce? These kinds of changes can impact your financial situation, and your home loan should evolve with you. Reviewing your mortgage ensures it still aligns with your lifestyle and future plans.
4. Your Property Has Increased in Value
If your home’s value has risen since you bought it, your Loan-to-Value Ratio (LVR) may have improved — which could qualify you for lower interest rates and better loan features.
5. You're Feeling Financial Strain
If meeting your monthly repayments is becoming more difficult, a home loan review might help you find breathing room. You may be able to restructure your loan or switch to a more affordable product.
Don’t Set and Forget Your Mortgage
Your home loan is a major financial commitment — one that should be working for you, not against you. By regularly reviewing your mortgage, you can adapt to market changes, meet your financial goals faster, and possibly save thousands over the life of your loan.
At Dream Catchers Lending, we specialise in helping first home buyers stay ahead of the game. Whether it’s been a year since you reviewed your loan or something’s changed in your life recently, our friendly team is here to help you explore your options.
Ready for a home loan health check?
Get in touch with Dream Catchers Lending today and find out how much you could be saving.
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