Is your rate still competitive? A two minute test
Lenders reward new customers. Here is how to tell if you are paying a loyalty tax.
Short answer
Most lenders price new loans more sharply than existing ones. Over time the gap between your rate and the best available rate can widen without you noticing.
The quick test
- Find your current rate on your latest statement
- Compare it with new-customer rates for your loan size and LVR
- If the gap is more than 0.30%, a review is worth 15 minutes
What a 0.50% gap costs
On a $700,000 loan, a 0.50% difference is roughly $3,500 a year in interest.
Your two options
Ask your lender to reprice, or switch. We usually try both and let the numbers decide.