How To Check If Your Home Loan Is Still Competitive in 2025

With interest rates and lending policies constantly shifting, it's never been more important for homeowners and first home buyers in Bathurst and Lithgow to review their home loan regularly. What was a great deal a year or two ago may no longer be competitive today.

At Sparks Finance, your trusted mortgage broker in Bathurst and mortgage broker in Lithgow, we help clients stay ahead of market changes and ensure they’re not paying more than they need to. Here's how to Check If Your Home Loan Is Still Competitive.

Why Checking Your Home Loan Matters

Your home loan is likely one of your biggest financial commitments. Even a small change in interest rate can have a significant impact on:

Your monthly repayments

Total interest paid over the life of the loan

How quickly you build equity

In today’s market, lenders are regularly adjusting rates, offering cashbacks, or introducing new products. If your loan is no longer competitive, you could be missing out on thousands in savings.

Signs Your Home Loan May Not Be Competitive

Check If Your Home Loan Is Still Competitive? Here are some red flags:

Your interest rate is above the current market average
You haven’t reviewed your loan in over 12–24 months
You’re not using features like offset or redraw
Your lender hasn’t passed on recent rate reductions
You’re paying high fees or charges
Your financial situation has improved (e.g., more equity, higher income)

How to Compare Your Loan in 2025

1. Check Your Current Rate and Loan Type

Look at your interest rate, whether it’s fixed or variable, and your loan features. Many borrowers don’t know what rate they’re on—this is the first step.

2. Compare With Current Offers

Lenders are offering variable rates around 5.8%–6.2% as of early 2025, depending on the product and loan size. Cashback offers and discounted rates may also apply to refinancers.

Tip: A mortgage broker can instantly compare your loan to dozens of lenders in minutes.

3. Calculate Potential Savings

Even a 0.5% drop in interest could save you thousands.

Example:

$500,000 loan over 30 years

At 6.5% = $3,160/month

At 6.0% = $2,998/month

Savings = $1,944/year

Should You Refinance?

Refinancing is a powerful way to:

Reduce your interest rate
Access better features (e.g., offset accounts)
Consolidate debts
Unlock equity for renovations or investments

Refinancing may suit you if:

Your rate is no longer competitive
You want to switch lenders for better service or rates
You want to adjust your loan structure or term

Refinancing may not be ideal if:

You’re locked into a fixed term with high break costs
You plan to sell your property soon
You’ve recently refinanced and don’t want more admin

A mortgage broker in Bathurst or mortgage broker in Lithgow can review your loan, calculate your break-even point, and help you decide.

Check If Your Home Loan Is Still Competitive - What to Look for in a Competitive Loan

Interest rate that reflects your equity and credit profile
No excessive monthly or annual fees
Useful features like redraw and offset
Flexibility to make extra repayments
Good customer service and transparency