Half of borrowers do not know their home loan rate, which makes it hard to spot savings. This guide shows how to check your mortgage interest rate, what it means for your budget, and the practical levers to lower repayments. You will see simple examples, clear steps, and guardrails to avoid surprises. Start by confirming your current rate, then decide the best move for your situation.

Mortgage Interest Rate: Check and Save

Key takeaways

• Know your rate before you compare or negotiate, then record balance, term, and product type.
• There are three high-impact levers: pricing review, refinance, or tune how your loan is set up.
• Always compare true switching costs with the yearly saving from a lower rate.
• Run simple stress tests before you choose variable, fixed, or a split structure.

Check Your Home Loan Rate

Recent research highlights a simple truth: if you do not know your mortgage interest rate, you cannot know if you are paying too much. “A Finder survey of 1,027 respondents – 291 of whom are mortgage holders – revealed more than half (54%) don't know what their interest rate is on their mortgage.”* That is a lot of households leaving money on the table.

Start with the basics. Open your lender app or last statement and note your current home loan rate, the comparison rate, product name, and whether repayments are principal and interest or interest-only. Write down the remaining term and the current balance. These details unlock accurate comparisons and help any rate review go faster.

Use a simple sense-check: a 0.25% change on a $500,000 balance is about $1,250 a year in interest, which is roughly $104 a month before compounding. If your lender has not moved after a rate cut, that gap adds up. “Banks rarely reward complacency, so reviewing your mortgage once a year should be as routine as your tax return.”*

Example: You have a $600,000 balance with 25 years left at 6.10%. If you find a like-for-like option at 5.85%, that 0.25% drop is about $1,500 a year in interest difference. Even after modest fees, a better offer can improve monthly cash flow and shorten the time to reach your goals.

Find your rate in your lender app

Your app usually shows the product name, interest rate, and repayment type on the account tile or details page. Statements include the rate near the transaction list or footer. If it is missing, call the lender and ask for your current interest rate and comparison rate in writing.

Pro tips

• Screenshot the rate page and save your latest statement.
• Confirm if the rate is a discounted variable or a revert rate after a fixed period.
• Record the date you checked so future reviews are consistent.

Note the comparison rate and fees

The comparison rate bakes in selected fees and shows a more realistic cost. When you compare home loans, look at both the interest rate and the comparison rate to keep it like-for-like.

Pro tips

• Watch for annual package fees and offset account fees.
• Check discharge and settlement fees if you refinance home loan later.
• Use a mortgage calculator to test repayment changes at ±0.25%.

Record balance, term, and product

Write down your balance, remaining term, and whether the product allows offset or extra repayments. These facts shape your options and the speed of any rate review.

Pro tips

• Estimate your current loan-to-value ratio using a recent sale nearby.
• List features you actually use, such as offset or redraw.
• Set a reminder for an annual rate review.

Helpful checklist

• Confirm rate, comparison rate, product, and repayment type.
• Save a statement and an app screenshot.
• Note balance, remaining term, and features you use.
• Set an annual calendar reminder for a rate review.

What this means for Buyers

• Pre-approval is smoother when your current details are clear.
• A precise rate history helps you compare home loans with fewer surprises.
• Knowing your rate supports better budget planning before you make an offer.

Quick Q&A

Q: How often should I do a rate review?
A: Once a year is a smart rhythm. A quick quarterly spot-check takes minutes.

Q: Is the comparison rate always higher?
A: Often, because it includes selected fees. Use it to compare like-for-like.

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Related reading: Understanding rates and repayments

• How Home Loan Interest is Calculated
• Mortgage Affordability Calculator
• Your Comprehensive Guide to Home Loan Features

Three Ways to Cut Your Rate

There are three common levers: ask for a discount, refinance home loan to a better deal, or adjust how your loan is set up. Start with the lowest-effort move, then step up if needed. “The average borrower stands to save roughly $213 per month – $2,553 annually – thanks to the interest rate cuts in February and May.”* Your goal is to capture fair value quickly and safely.

Work in order: pricing review with your current lender, then external options, then structure changes. Keep notes of every quote and fee so you can compare true savings. If you switch, make sure any cashbacks or fee waivers do not distract from the long-term rate.

Example: Balance $700,000 at 6.20% with 27 years to go. A 0.40% reduction to 5.80% saves about $2,800 a year in interest. If switching costs are $1,200, your break-even is roughly five months. After that, the saving continues.

Ask Your Lender for a Pricing Review

Call your lender and request a pricing review. Mention your current rate, balance, term, and any lower offers you have seen. Be polite and specific. If your loan-to-value ratio has improved, say so. This is fast, keeps features, and avoids switching costs.

Pro tips

• Check like-for-like rates with the same features and repayment type.
• Point to a lower LVR band if your equity has improved.
• Ask if the discount is permanent or time-limited.

Template phrase: “Hi, I’m seeking a pricing review on my home loan. My current rate is X%, balance $Y, LVR about Z%. I have seen comparable offers at X-Δ%. Can you match or beat this today?”

Refinance to a Sharper Offer

Refinancing can deliver a larger cut, plus features you value. Compare home loans across several lenders and note the comparison rate, fees, and revert rate. Make sure the saving is sustainable after any intro period ends.

Pro tips

• Ask for fee waivers or a credit for switching costs.
• Confirm discharge, registration, and settlement fees in writing.
• Check if there are break costs when leaving a fixed rate.

Worked example: $550,000 balance moves from 6.05% to 5.55%. That 0.50% cut is about $2,750 a year before compounding. If total costs are $1,000, break-even is under five months.

Tune Your Current Loan Setup

If you want to stay put, consider changes that reduce interest paid. Options include switching from interest-only back to principal and interest, adding an offset account, or moving to a package with a stronger ongoing discount.

Pro tips

• Use an offset to park salary and savings to reduce daily interest.
• Keep extra repayments flexible with redraw if suitable.
• Review features yearly to avoid paying for what you do not use.

Worked example: $400,000 balance with $20,000 in offset saves interest on the net $380,000. At 5.90%, that reduces yearly interest by about $1,180.

Checklist

• Collect quotes with rates, comparison rates, and fees.
• Confirm break costs if leaving a fixed term.
• Calculate break-even: costs divided by monthly saving.
• Set a decision date and move promptly.

What this means for Sellers

• Lower repayments can ease cash flow while your property is on the market.
• A sharper rate can improve serviceability for your next purchase.
• Be careful with fixed terms that extend past your planned sale date.

Quick Q&A

Q: Can I negotiate a lower interest rate with bank without switching?
A: Yes. Ask for a pricing review with your facts ready. Many lenders match strong offers.

Q: Will refinancing hurt my credit score?
A: A credit enquiry appears, but a well-managed refinance is common and temporary.

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Related reading: Refinance strategies and options

• Choosing the Best Refinance Options for Your Home Loan
• 6 Signs It's Time to Refinance Your Mortgage
• The Investor's Playbook: Refinancing for Property Investment

Variable vs Fixed vs Split

This is a decision about uncertainty and flexibility. Variable rates can move, which helps when rates fall but can lift repayments when rates rise. Fixed rates offer certainty for a set period, then revert to a different rate. A split loan combines both to balance risks.

Focus on time horizon, cash-flow tolerance, and features you need. If you plan to sell or renovate soon, you may value flexibility. If you want payment certainty for a defined period, fixing some or all can help. Always check the revert rate and any break costs.

Example: $450,000 balance, 25 years left. Variable quote 5.95%. Fixed 2-year quote 5.69%. That 0.26% gap is about $1,170 a year before compounding. If you expect to make extra repayments, the variable option with offset might be worth more than the headline gap.

Variable Rate: Pros, Cons, Scenarios

Pros: flexibility, access to offset and redraw, and the chance to benefit if interest rates Australia fall. Cons: higher repayment volatility. Use it when you expect rate cuts or want full access to features.

Pro tips

• Stress test repayments at +1.00% for peace of mind.
• Use an offset to cushion swings and reduce interest charge.
• Check if your lender offers ongoing discount tiers at lower LVRs.

Fixed Rate: Pros, Cons, Scenarios

Pros: certainty for budgeting, protection from rate rises. Cons: potential break costs, limited features, and less flexibility. Useful when you want stable repayments for a set period like a newborn year or a tight savings goal.

Pro tips

• Confirm extra repayment caps during the fixed term.
• Ask what the revert rate will be and for how long.
• Check break-cost rules before fixing if you might move early.

Split Loan: Mix and Match

Splitting blends certainty and flexibility. A common mix is 50:50, but you can tailor it to suit cash-flow and goals. Use the fixed side for certainty and the variable side for offset and extra repayments.

Pro tips

• Match the fixed side to the amount you rarely touch.
• Keep your emergency buffer on the variable side with offset.
• Review the mix at each fixed-term expiry.

Checklist

• Write your time horizon: 1, 2, or 5 years.
• Stress test repayments at ±1.00%.
• Confirm features you need: offset, extra repayments, redraw.
• Check revert rate and any break-cost rules.

What this means for Current borrowers

• Variable works well if you plan to pay extra or use offset.
• Fixed helps if you value certainty over flexibility.
• Split can balance both, with a tailored ratio.

Quick Q&A

Q: Can I change my split later?
A: Yes at term end, or earlier with fees. Ask your lender for rules.

Q: Do fixed loans allow offsets?
A: Some do, often with limits. Check product details carefully.

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Refinance: Costs and Timelines

Switching can be quick if you prepare documents early and keep decisions moving. Map the costs, timeline, and potential hurdles. The goal is a smooth change-over with no repayment overlap and a clear break-even point.

Expect a credit check, valuation, and legal work. Ask your existing lender about discharge turn-around and fees. Confirm settlement timing so your old loan closes the same day the new one opens.

Example: $650,000 balance drops from 6.20% to 5.70%. That 0.50% cut is about $3,250 a year before compounding. If costs total $1,300, break-even is about five months, then you save for the rest of the year.

Count the Real Switching Costs

Build a simple table: application fee, valuation, discharge, registration, settlement, and any package fees. Add them up and compare with the yearly saving from the lower rate. Cashbacks help, but do not let them overshadow the ongoing rate.

Pro tips

• Get fees in writing from both lenders.
• Watch for pro-rata annual fees and early exit fees on packages.
• Check if government registration fees apply in your state.

Refinance Timeline: Week by Week

Week 1: submit application with ID, statements, and payslips. Week 2: valuation and conditional approval. Week 3: formal approval and loan docs. Week 4: settlement. Keep momentum by responding to requests within 24–48 hours.

Pro tips

• Upload complete statements to avoid back-and-forth.
• Nominate a settlement date that avoids public holidays.
• Check your direct debits so nothing bounces during change-over.

Valuations and LVR Tiers

Valuation affects your LVR band, which can unlock sharper pricing. If your LVR falls below a key tier, ask for a stronger discount. If the valuation comes in lower than expected, you may still find value with a small rate cut that covers costs quickly.

Pro tips

• Order a desktop valuation early if available.
• Point to recent comparable sales that support your estimate.
• Ask your new lender which LVR tiers trigger better pricing.

Settlement Day: What Happens

The new lender pays out the old balance, your old loan closes, and your new repayments begin. Check that offsets and direct debits are set up correctly. Keep the final payout letter for your records.

Pro tips

• Confirm final figures two days before settlement.
• Keep copies of loan contracts and the settlement statement.
• Double-check your first repayment date and amount.

Checklist

• List all fees and compare with yearly saving.
• Track a week-by-week timeline.
• Prepare ID, income, and statements up front.
• Confirm settlement details in writing.

Quick Q&A

Q: Can I switch home loans without fees?
A: Some lenders waive certain fees, but government and third-party costs can still apply. Always total the real cost.

Q: How much could I save by refinancing?
A: Rough guide: each 0.25% on $500,000 is about $1,250 a year before compounding. Compare that with your costs.

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Sources

* What’s my rate again? 1 in 2 homeowners don’t know their mortgage interest rate: Finder; 2025

Disclaimer: The opinions expressed in this article are strictly for general informational and entertainment purposes only and should not be taken as financial advice or recommendations.