Is It Time for a Home Loan Review? Here’s What Investors Should Know

Is It Time for a Home Loan Review?

A home loan isn’t something most people think about once it's set up. But the truth is, your loan should evolve as your life and the market change. Interest rates shift, banks bring out new offers, and what worked for you two years ago might not be the best fit today.

The Reserve Bank of Australia reported the average interest rate for existing investment home loans (principal and interest) is sitting at 6.20%. Meanwhile, many lenders are currently offering new investment loan rates in the mid-to-high 5% range. That difference might not seem like much—but over time, it adds up.

For example, on a $450,000 loan over 30 years, a 0.50% difference in interest rate could increase repayments by over $150 per month and cost more than $55,000 in additional interest over the life of the loan.

That’s where a home loan review comes in.

Think of it like a regular check-up—something you do every 12–24 months just to make sure everything’s still on track. It’s a chance to take stock of where you’re at, compare your current loan with what’s available now, and make informed decisions moving forward.

A review can help uncover:
• Whether your interest rate is still competitive
• If your loan structure suits your current goals
• Opportunities to tweak repayments or access loan features you’re not using
• Ways to reduce pressure on your cash flow or free up equity

It’s not about switching banks for the sake of it. Sometimes, the outcome is peace of mind. Other times, a few simple changes could make a big difference.
If you can’t remember the last time you looked at your loan, that’s a pretty good sign it’s time.

We’ve made it easy to get started. Visit urbanmoney.com.au/home-loan-review, drop in your details, and we’ll check if your loan is still doing what it should be for you.

Disclaimer: The average interest rate of 6.20% for existing investment home loans (principal and interest) is based on Reserve Bank of Australia data as at April 2025. Current lender rates in the mid-to-high 5% range are based on rates available through our lending panel and are correct as at 02/07/2025. Information is general in nature and does not take into account your personal objectives, financial situation, or needs. All savings examples are estimates only and may vary depending on your individual circumstances. Urban Money Australia Pty Ltd ACN 623 636 206 Australian Credit Licence 507905