Written by Gareth Sweeney
Reviewed by Teo Torrelli, Director and Senior Mortgage Broker
Rates go up and down, but one thing stays the same: staying put can cost you. What does that mean for your home loan?
“It could mean more money in your pocket,” says Teo Torrelli of MKS Lending Group.
But how?
For many, matters of personal finance are so dull and/or difficult, they are immediately filed in the too-hard basket.
And for their trouble, or lack thereof, these people are often slugged with a ‘lazy tax’ – the price paid for staying put.
Loyalty too, or simply being time-poor, can also be punishable by paying too much for your home loan!
But it doesn’t have to be this way.
A recent Australian Competition and Consumer Commission (ACCC) report showed that new borrowers with an average-sized residential mortgage paid up to $2,500 less a year in interest, than existing borrowers with the same lender.
However, despite the apparent benefits, actively ensuring an interest rate remains suitable is a practice that continues to elude many.
Fortunately, Teo Torrelli at MKS Lending Group is here to assist in this process.
Mortgage Brokers play a vital role in assisting borrowers through the process of ensuring their mortgage is competitive.
MKS Lending Group has been arranging loans since 1985 and we’re ready to guide you through the task of refinancing your loan.
Is your loan still competitive?
Whether interest rates are rising, falling or on hold, lenders often keep their sharpest rates for new customers. A quick review every year or two is one of the easiest ways to avoid paying a loyalty tax.
We compare 50+ lenders, including a retention offer from your current lender, and only recommend switching when the savings are clear. Read about refinancing or book a free loan review.
Signs your loan needs a health check
- You have not reviewed your rate in the last 12 to 24 months
- Your fixed rate period is about to end and you will roll onto a higher variable rate
- New customers are being offered lower rates than you are paying
- Your property has gone up in value, so you may now have more than 20% equity
- Your circumstances have changed: a new job, a growing family, or plans to renovate or invest
- You are paying for features, such as a package fee, that you do not use
Ask your lender first, or switch?
Sometimes a phone call is enough. Many lenders will reprice your loan if you can show them a better offer, and that saves you the cost and paperwork of moving. When we review your loan we can approach your current lender first, then compare the market if it will not move.
If switching makes sense, weigh up the costs before you go: a discharge fee from your old lender, government registration fees, possible application or valuation fees with the new lender, break costs if you are on a fixed rate, and lenders mortgage insurance if you have less than 20% equity. We set these out side by side so you can see your real saving.
How we take the hassle out of it
- A quick chat. Fifteen minutes on the phone or in our Moonee Ponds office about your loan and goals.
- We do the comparing. We check your current deal against more than 50 lenders.
- We handle the paperwork. If you switch, we prepare the application and liaise with both lenders.
- We check in. We review your loan regularly so you do not slip back onto an uncompetitive rate.
Want to see whether you could save? Try our repayment calculator or read refinancing in 2026.
Frequently asked questions
How often should I review my home loan?
At least once a year, and whenever your fixed rate is ending, your property value has risen or your circumstances change. A regular review is the simplest way to avoid paying a loyalty tax.
Will refinancing hurt my credit score?
A new loan application adds an enquiry to your credit file, which can have a small, short-term effect. A broker helps by applying only with the lender most likely to approve you, rather than several at once.
How much does it cost to refinance?
It varies by lender and loan. Typical costs include a discharge fee, government registration fees and sometimes application or valuation fees. Break costs can apply to fixed rate loans. We work out the total cost before you decide, so you know whether the saving is worth it.
Want advice for your situation?
Book a free, no-obligation loan review with MKS Lending Group. We compare 50+ lenders and explain your options in plain English.