Mozo guides

4 reasons to break up with your home loan lender

bride and bank split as people break up with their home loan lenders

When you find your home loan lender, it might feel like you've met your one and only. While the romance might come thick and fast in the honeymoon period, sometimes the seven year itch can come early.

So if you’re wondering whether your bank is still your true borrowing love, it may be time to check off this list of reasons to break up with your lender.

1. They’ve changed (their interest rates)

When you first met your bank, they lured you in with a great interest rate and low fees. But when you take a glance at your home loan statement now, your ongoing payments seem to be quickly creeping up.

"What’s their problem?" you might think. "Don’t they care?"

Unfortunately, many lenders are dealing with other baggage at the moment, like the fluctuating interest rates of the last year. If that's the case, it could be time to see if the grass is greener on the other side.

Check what deals other home loan lenders in the market are offering. If you find a lower rate, this could bring down your repayments and save you on interest over the life of the loan. 

You can start your search by comparing home loans with Mozo. 

2. You’ve changed (your home loan needs)

It's not them, it's you. Your family has grown, you’ve upsized, your situation has changed, and now you need a home loan with more flexible features so you can meet your dreams sooner.

Whether it’s a home loan that comes with the ability to make extra repayments or provides an offset account to stash your cash, it could be time to make the switch.

If this sounds like you, you might need to figure out which home loan features you need.

3. You want security (with a fixed rate loan)

If you’re fed up with the unpredictable nature of variable rates, you might want to explore the stability of a fixed interest rate.

Refinancing to a fixed interest rate loan could be an option that suits your . This way, your interest rates and repayments will remain fixed and predictable for a certain term.

Keep in mind, if you’re refinancing to a fixed rate loan, many come with break cost fees if you need to pay them out or refinance before the fixed period has come to end. So only make this move if you’re sure you will be sticking with the new loan for the entire fixed term.

4. You feel neglected (by your lender)

You try calling them, but only get a voice recording. Sometimes you feel they're just using you for interest.

All playfulness aside, it can be jarring if your lender has been snapped up by a big bank, or if you prefer to bank in person and all of your local branches are closing down.

If you miss the personal touch, this could be another sign it’s time to make the switch. Your best bet, if this is the case, is to head on over to our rate and review section, where you can read thousands of reviews from real life customers to see which providers get the thumbs up for customer service.

Compare refinancing home loans - last updated 27 May 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
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    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    6.01% p.a.

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  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

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  • Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

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Looking to refinance?

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If you'd like to talk with an expert about your home loan needs we can put you in touch with the team at Lendi.

Answer a few questions online about your current situation and Lendi will connect you with one of their experienced home loan specialists.

Loan details

Rate change

Repayment change if rates go up

Gabriella Margerison
Gabriella Margerison
RG146
Personal finance writer

Gabby is a seasoned consumer and lifestyle-focused writer, with a Bachelor of Communications and RG146 certification for Generic Knowledge under her belt. Gabby has over a decade of experience identifying the best deals in retail, travel, and tourism for major consumer brands including DealsDirect, Luxury Escapes and Brands Exclusive. At Mozo, Gabby combines her personal finance and editorial knowledge with her passion for helping Australians make the most of their money.

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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