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Why an annual home loan review can be worth booking

Use this when your rate, income, renovation plans or property goals have changed since the last loan review.

Updated: 15 June 2026
Read time: 7 min read
Reviewed by: emoney broker team

Reviewed for general guidance. Reviewed by emoney broker team. Last updated 15 June 2026. Sources are listed below so borrowers can check the public references behind this general information before speaking with a broker.

Key checks before you decide

Check the interest rate, comparison rate, and repayment.
Check annual, package, discharge, and other fees.
Check whether offset, redraw, split, or extra repayment features are being used.
Check whether your next one to two years look different from last year.
Your income, expenses, job type, or household situation changed.
You want to renovate, invest, sell, or use equity.

Full guide

Now read the full guide

Checklist

Book the review before there is pressure

A yearly review gives you time to check the loan while there is still room to move. It can catch changes in rate, fees, features, equity, repayment comfort, or goals before a rushed refinance decision is needed.

A home loan can drift quietly. The rate may no longer be competitive, an offset account may be underused, a fixed-rate date may be approaching, or the borrower may have more equity than they had when the loan was written.

The point of an annual review is not to force a refinance every year. It is to create a calm checkpoint where the borrower can compare staying, repricing, restructuring, or switching before a deadline or repayment shock makes the decision feel urgent.

For many households, the loan is one of the largest ongoing commitments in the budget. A yearly check gives the borrower a habit for reviewing that commitment with the same discipline they might apply to insurance, tax records, or major savings goals.

Check the interest rate, comparison rate, and repayment.
Check annual, package, discharge, and other fees.
Check whether offset, redraw, split, or extra repayment features are being used.
Check whether your next one to two years look different from last year.

Guide

Use life changes as review triggers

The yearly rhythm is useful, but some changes should bring the review forward. Income changes, a new child, renovation plans, investment goals, debt consolidation, fixed-rate expiry, or repayment stress can all change the right next step.

Life changes can affect both what the borrower needs from the loan and how a lender would assess the borrower. A higher income, lower income, new business, parental leave period, new debt, or changed household budget can all shift the practical options.

A review can also be useful before a major decision. Renovating, investing, selling, upgrading, or using equity should not start with a product change. It should start with a check of borrowing capacity, repayment comfort, documents, and timing.

The review trigger does not need to be dramatic. Even a change in savings habits, offset balance, overtime, childcare costs, or credit-card limits can be enough to change how the loan should be managed.

Your income, expenses, job type, or household situation changed.
You want to renovate, invest, sell, or use equity.
You are close to fixed-rate, interest-only, or introductory-rate expiry.
You are paying for loan features you rarely use.

Broker note

Ask the current lender before assuming you must switch

An annual review should compare the current lender first. A simple repricing or structure change may solve the issue without a full refinance, although the offer still needs to be compared against costs, features, and future plans.

Current-lender repricing is often the lowest-friction pathway to test. It may avoid a full application, valuation, discharge, and settlement process, although the borrower still needs to check whether the result is strong enough.

A broker can help compare the retention offer against other lender pathways. That comparison should include rate, fees, features, loan term, LVR, document requirements, settlement timing, and the borrower's plans for the next few years.

Can the current lender reprice the loan?
Would a split, offset, redraw, or repayment change solve the issue?
Would refinancing still help once switch costs are included?
Is there enough equity to avoid extra costs such as LMI?

Watch out

Watch for costs that hide inside a lower repayment

A lower monthly repayment can be helpful, but it can also come from a longer loan term, fees, or a structure that does not fit. Check the total position before deciding the review result is good.

The loan term deserves special attention during annual reviews. Resetting a loan to a longer term can make the monthly number look easier while increasing the time the borrower pays interest.

The review should also check switch costs and policy friction. Discharge fees, application fees, valuation fees, fixed-rate break costs, LMI, and settlement costs can all reduce the value of a refinance or change the timing of the decision.

A broker review should therefore compare the benefit over the period the borrower realistically expects to keep the loan, not only the first monthly repayment after the change.

A longer loan term can increase total interest.
Switching can involve discharge, application, valuation, settlement, or package costs.
Fixed loans can need break-cost checks before any early move.
Cashback and rate offers need to be compared with conditions and time in the loan.

Checklist

Update documents and loan details

A broker can review faster when the current loan and borrower position are clear. You do not always need a full application pack, but you do need enough information to check the direction properly.

The current loan statement is the starting point. It shows the lender, balance, rate type, repayment, fees, and sometimes the offset or redraw position. That information helps the review compare real numbers instead of guesses.

The borrower story matters too. A broker should know if income has changed, expenses have risen, the borrower has added debts, the property has been renovated, or the borrower is planning to invest, sell, renovate, or consolidate debt.

Keeping this information in one place also makes future reviews easier. The borrower can return to the same baseline each year and see what has changed rather than rebuilding the whole picture from scratch.

Current lender, balance, repayment, rate type, and fixed-rate end date if relevant.
Income type and any recent job, business, or household changes.
Credit-card limits, personal debts, and major living-cost changes.
Property estimate, rental income, strata, insurance, or renovation plans where relevant.

Next step

Want a broker to check this against your situation?

Answer a few questions so emoney can route your enquiry to the right broker conversation.Book a home loan health check

Example

Use calculators as a first pass

A repayment calculator can test rate changes and repayment comfort. A refinance savings calculator can test whether a possible switch might recover its costs. A calculator cannot confirm lender policy, valuation, or document fit.

A calculator is most useful when the borrower enters the current loan first, then compares one or two realistic alternatives. That creates a practical baseline for the broker conversation.

The calculator result should not be treated as a decision by itself. It does not know whether a lender will accept the income, how the valuation will land, whether LMI applies, or whether the new loan structure is suitable for the borrower's plans.

Run the current repayment and one realistic alternative.
Add known fees before judging savings.
Check the result over the time you expect to keep the loan.
Ask a broker to test policy before you rely on the number.

Broker note

Set the next review date

The best review ends with a clear next check, even if you make no change now. Put the review date near your annual loan anniversary, fixed-rate expiry, planned renovation, or other borrower milestone.

A review that ends in no change can still be a good result. It may confirm the current loan is reasonable for now, identify a document gap to fix, or set a date to revisit the position when equity, income, or rates have changed.

The final step should be specific. Record what was checked, what was left open, what would trigger an earlier review, and what documents would make the next conversation faster.

That simple record turns the annual review into a habit instead of a one-off task. It gives the next broker conversation context and helps the borrower avoid repeating the same uncertainty each year.

Review yearly if nothing major changes.
Review earlier if repayments feel tight or a fixed period is ending.
Keep the documents that were hard to find this time.
Use the review to decide the next step, not to force a refinance.

Calculator next step

Home loan repayment calculator

Test whether a loan amount, rate, term, and repayment type feel workable before taking the numbers further.

Best for: Checking repayment comfort across purchase, refinance, or rate-change scenarios.
What it calculates: Weekly, fortnightly, or monthly repayments from loan amount, rate, term, frequency, and repayment type.

A broker still needs to check fees, comparison rates, offset or redraw settings, loan structure, and policy fit.

Open Repayments

Sources used

officialASIC MoneySmart choosing a home loan officialASIC MoneySmart switching home loans officialASIC MoneySmart using a mortgage broker officialReserve Bank of Australia cash rate target

General information only

This guide is general information and does not take into account your objectives, financial situation, or needs. A broker can review your circumstances before any recommendation.