Is Your Home Loan Still Working for You in Today’s Market?
With the cash rate currently on hold at 4.35%, many borrowers across Perth are taking a step back to reassess their home loan to see is it still worth refinancing? —and it’s a smart move.
Over the past 12–18 months, we’ve seen rapid changes in both interest rates and property values. At the same time, household budgets are still feeling the pressure of rising living costs.
That means even a small improvement to your interest rate could make a noticeable difference to your monthly cash flow. According to MoneySmart.gov.au there can be a difference of more than 2% between variable home loans on the market.
If it’s been a while since you last reviewed your loan, now is a great time to do a quick health check.
Why Reviewing Your Loan Matters More in Perth Right Now
Perth’s property market has been one of the strongest in the country, with home values rising more than 25% year-on-year in some data sets and pushing median prices past the $1M mark.
While that’s great news for homeowners, it also means:
- Your equity position may have improved
- You could be eligible for sharper rates
- Your current loan may no longer be the most competitive option available
In fact, with variable rates still typically sitting above 6% for many borrowers, reviewing your options could unlock real savings. [homelending.au]
Could You Be Paying a ‘Loyalty Tax’?
Many lenders reserve their best offers for new customers—not existing ones.
So if you’ve had your loan for a few years without reviewing it, there’s a chance you’re paying more than you need to. Rate differences between lenders can still exceed 2%, which can add up to thousands of dollars over time.
A quick comparison could reveal opportunities to reduce your repayments or pay your loan down faster.
Look Beyond the Rate: Understand the True Cost
Refinancing isn’t just about chasing a lower interest rate—it’s about the overall benefit.
Depending on your situation, you may need to factor in:
- Break costs (if you’re on a fixed rate)
- Discharge fees from your current lender
- Establishment or application fees with a new lender
- Internal switching fees
- Stamp duty (in some cases)
At Fox Mortgage Services, we help you weigh these costs against the potential savings—so you can make a confident, informed decision.
Equity Could Be Your Biggest Advantage
With Perth property values surging and housing supply remaining tight, many homeowners now have more equity than they realise. [homelending.au]
This can work in your favour by:
- Improving your borrowing position
- Helping you secure a more competitive rate
- Potentially avoiding Lenders Mortgage Insurance (LMI)
However, if your equity is still below 20%, refinancing could trigger LMI—and it’s important to know that LMI usually isn’t transferable between lenders.
Don’t Reset the Clock Without a Strategy
One common trap when refinancing is resetting your loan back to a full 30-year term.
While this can reduce your monthly repayments, it may significantly increase the total interest paid over time.
A smarter approach is often to structure your new loan to align with your remaining loan term—balancing affordability with long-term savings.
Use the Right Features to Your Advantage
In a higher-rate environment, the right loan features can make a real difference.
Tools like:
- Offset accounts
- Redraw facilities
can help reduce the interest you’re charged while still giving you access to your funds when needed.
These features are especially valuable for managing cash flow and building a financial buffer.
Why Working With a Broker Matters
Online comparison sites can be helpful—but they don’t always show the full market. Many only highlight a limited group of lenders or prioritise sponsored products.
At Fox Mortgage Services, we take a tailored approach. We look at your full financial picture and compare a wide panel of lenders to find a solution that genuinely fits your needs.
We’ll also guide you through key considerations like:
- Upfront costs vs long-term savings
- Your borrowing capacity under current lending rules
- Fixed vs variable options, including rate lock strategies
Let’s Make Sure Your Loan Is Still Working for You
Your home loan should support your lifestyle—not add unnecessary pressure.
With Perth’s market moving quickly and rates still elevated, now is the time to make sure you’re not leaving money on the table.
✅ Book a complimentary Home Loan Health Check with our team today
✅ Get clarity on your options
✅ And potentially save thousands over the life of your loan
Fox Mortgage Services — Helping Perth locals make smarter home loan decisions.