Home loan health check

How this lending option works

A home-loan health check tests whether the current pricing, structure and lender still suit your position. It should produce a clear outcome: retain the loan, request better pricing, adjust how the loan is used, or investigate refinancing. Switching is not automatically the best result.

Review current pricing and features
Check repayment and offset arrangements
Assess whether changing lenders is worthwhile

Pricing and total cost

Compare the current rate and annual fees with realistic alternatives for the same loan size and borrower profile. Include package fees, account fees, discharge and switching costs, incentives and the time required to recover any net cost.

Structure and day-to-day use

Check whether loan purposes are separated, offset accounts are correctly linked and holding meaningful balances, redraw is being used appropriately, repayments match the intended term, and fixed or interest-only periods still serve a clear purpose.

Future borrowing capacity and flexibility

The current lender may be inexpensive today but restrictive for the next purchase, equity release, renovation or business requirement. A useful review considers upcoming plans, lender policy, valuations and whether cross-collateralisation or unnecessary limits reduce flexibility.

The outcome of the review

If the loan remains competitive and suitable, retaining it avoids unnecessary cost and administration. If pricing is the only issue, a lender repricing request may be enough. Refinancing should be considered only where the quantified benefit or strategic improvement justifies the change.

Common questions

What information is needed for a health check?

Your latest loan statement, current rate, repayment, remaining term, annual fees, offset balance, property estimate, income position and near-term plans are a useful starting point.

Will a health check affect my credit score?

An initial review does not normally require a formal credit application. A credit enquiry may occur if you later authorise an application with a lender.

Can I ask my existing lender for a better rate first?

Yes. Repricing the current loan can be efficient where the structure remains suitable. The offered rate should still be compared with realistic alternatives and total switching costs.