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The #1 Home-Owner Mistake That’s Costing You Thousands 💸
Let’s be real here—once your mortgage is set up, it’s easy to stop thinking about it, most people do. Life is always super busy, and as long as your repayments go through each month, it just feels like one less thing to worry about.
So what’s the problem you ask?!: Banks count on you setting and forgetting your mortgage—and that could be costing you thousands. 😥
Take one of our recent clients, a young family juggling work, school drop-offs, and weekend sports and commitments. They hadn’t looked at their mortgage since they bought their home over three years ago. When they first signed, their rate was competitive, but over time, this had been quietly nudged up. When we checked, they were on 6.5%, while new customers were getting closer to 5.8%.
A quick review, a bit of negotiation, and we secured them a better deal. The result? $300 a month back in their pocket—that’s around $3,600 a year just by making one simple change.
If you haven’t checked your mortgage in a while, there’s a high chance you’re paying more than you need to. Let’s go through why this happens, how much it may be costing you, and—most importantly—how to fix it.
What Is the "Set and Forget" Mortgage Trap?
Most people assume that once their mortgage is sorted, they’re locked into a good deal for the long haul. But the truth is: banks don’t reward loyalty—they profit from it.
Lenders often offer their best rates to new customers, while quietly ignoring rates for existing ones, hoping you won’t notice their advertised rates are now lower than your rate. Unless you’re actively checking, you probably wouldn’t notice.
This is exactly what happened with the family we mentioned earlier. When they first took out their loan, it was one of the better deals on the market. But after three years of making their repayments on time and no mortgage check-ups, they were paying thousands more than they needed to. And they’re not alone—this happens to homeowners across Australia every single day.
The good news? It’s easy to fix once you know what to look for.
The Hidden Costs of Not Reviewing Your Mortgage
Ignoring your mortgage for a few years might not seem like a big deal—until you realise how much extra you’re handing over to the bank. Where could you be losing money without even knowing it:
1. Higher-Than-Necessary Interest Rates - ouch 😖
Lenders rarely offer their best rates to existing customers. So someone who just took out a home loan with the same lender as you could be paying less interest than you—even though you’ve been loyal for years!
2. Outdated Loan Features
Your bank may have changed since you first got your mortgage. Maybe you’re earning more, maybe you have built up your savings, or you just want to pay your loan down faster. But if your mortgage doesn’t allow flexible repayment options—such as the ability to make extra repayments without penalty or easily access redraw/offset funds when needed—you could be missing out on a smarter way to manage your money.
Flexible repayments let you pay extra when you have surplus cash, reducing the interest you pay over time. A good redraw facility allows you access to those extra repayments if you ever need the funds back. Without these features, your mortgage could be working against you rather than for you.
3. You Simply Don’t Know What You Don’t Know 🤔
One of the biggest mistakes you can make with your mortgage is assuming that if there was a better deal out there, your lender would tell you. Spoiler alert: THEY WON’T.
Lenders update their loan products and pricing all… the… time…, but they won’t automatically move you to a better deal—you must ask. And in today’s market, there are often little (or not so little) incentives such as special offers, rate discounts, and loan structures that could possibly save you thousands. But if you don’t know when and how to check, you’ll never know what you’re missing.
A quick check of your mortgage could mean a lower interest rate, reduced fees, or better loan features that actually suit your lifestyle now. If you haven’t looked at your mortgage in the last couple of years, well, you should.
4. Unnecessary Fees – another ouch!
Banks are notorious for sneaky fees—account-keeping fees, redraw fees, and annual package fees that slowly eat into your budget. Some of these can be avoided simply by switching to a better loan product.
For that family, it wasn’t just the interest rate that was the problem. Their loan had an annual package fee of $395, which we eliminated by switching them to a more competitive product. That alone saved them nearly $1,200 over three years—on top of their lower repayments.
The bottom line? If you’re not reviewing your mortgage regularly, you’re probably giving the bank more money than you need to.
How Much Could This Mistake Be Costing You? 💰
Most people don’t realise just how much money they’re losing by sticking with an outdated mortgage. The numbers can be eye-opening.
Let’s say you took out a $650,000 home loan three years ago at an interest rate of 6.5%. If you haven’t checked your mortgage since, chances are there’s a better deal out there. By refinancing to a lower rate of 5.8% (used as an example), your monthly repayments could drop by around $300 per month—that’s around $3,600 a year straight back in your pocket.
Now, imagine what you could do with that money:
✅ Pay off your home loan years sooner simply by keeping your repayments the same
✅ Get that investment property you keep dreaming of
✅ Ease financial stress and free up room in your budget
And it’s not just about the interest rate. If your loan has annual package fees, high redraw fees, or restrictions on extra repayments, those costs can add up fast.
That’s the power of a simple mortgage check—how much could you be saving?
Signs It’s Time to Review Your Mortgage 👀
Not sure if you should be looking at your mortgage? Here are some clear signs it’s time for a check-up:
1. What does your Interest Rate Starts with?
As of the day of writing this, variable rates for owner-occupied loans can range from approximately 5.64% to 7.21% per annum. There are many competitive rates out there amongst many different lenders, and a lot of what you can access depends on your current situation. But, if you think you are paying too much, well, you should check.
2. You’ve Had the Same Mortgage for 3+ Years
Even if your loan was the best deal when you got it, the market shifts, and lenders update their offers. If you haven’t reviewed your mortgage lately, you could be missing out on lower rates, better features, or reduced fees.
3. Your Loan Has High Fees 📉
Do you have an annual package fee of $300–$400 (or more)? Are you getting hit with redraw fees or account-keeping charges? Some of these can be avoided by switching to a loan with a more competitive structure.
4. Your Financial Situation Has Changed
Life moves fast nowadays—maybe you’re earning more, have extra savings, or want to put more towards your mortgage. If your loan doesn’t allow for extra repayments without penalty or make it easy to access your funds when needed, you may not be getting the best deal.
5. You Feel Like You’re Not Making a Dent in Your Loan
If it feels like you’ve been paying off your mortgage for years and the balance is just not moving much, it could be due to a high-interest rate or the wrong loan structure. Even a small reduction in interest can have a massive impact on how quickly you pay off your home.
6. You’re Just Curious if You Can Do Better
Even if nothing seems “wrong” with your mortgage, it never hurts to check. A quick checkup could confirm you’re on a great deal—or show you other potential savings. Either way, it’ll be 10 minutes well spent.
If any of this sounds familiar, it’s time to act.
What You Can Do About It (Without the Hassle)
If the idea of reviewing your mortgage sounds tiring, overwhelming or even a bit boring, don’t worry—it’s not as painful as you think. Here’s a few tips on how to take control and make sure you’re not overpaying.
1. Check Your Current Rate
First, find out what interest rate you’re currently paying. You can usually find this on your latest mortgage statement or through your bank’s online banking. It’s time to start asking questions.
2. Compare to What’s Available Now
You don’t need to spend hours researching—this is where we come in. We keep track of the latest rates and loan products, so we can quickly tell you if you could be getting a better deal.
3. Negotiate with Your Current Lender
Sometimes, your bank will lower your rate if you ask—but you have to know what to ask for. If you’re not comfortable negotiating, we can do this for you. We know exactly how to approach lenders and what to ask.
4. Consider Refinancing
If your lender won’t offer a competitive rate, consider refinancing to a new lender that will offer you a better rate. And while switching banks might sound like a hassle, the reality is it’s not, it’s way easier than people think.
5. Set a Reminder to Review Every 12–24 Months
A mortgage isn’t something you should “set and forget.” To make sure you’re always on a great deal, set a calendar reminder to review your loan every 12–24 months. A quick check-up could mean extra savings with minimal effort.
*Or if you are with us, this is something we do for you and will be in touch when the time is right, without you needing to worry or think about it.
The Bottom Line
You work hard for your money—why give the bank more of it than you need to?
A simple mortgage checkup could simply save you plenty each year—but you have to take action.
So, here’s our challenge to you:
Don’t wait ANOTHER year, NOW matters. Get in touch with us today for your checkup. For 10-20 minutes of your time, it could be putting thousands back in your pocket – that’s a pretty great exchange as far as we see it.
📞 Call us today or 📩 book a free mortgage check-up online—you’ve got nothing to lose and a whole lot to gain.
