Check 1: Your Interest Rate
Start with the rate. Lenders often reserve their sharpest pricing for new customers, so existing customers need to ask for a review rather than wait for one.
Consider a $700,000 home loan over 30 years on principal and interest repayments. At 6.90% the repayment is $4,610 a month; at 6.40% it is $4,379. That gap of around $230 a month works out to roughly $2,780 a year. Both rates are illustrative.
Business loans work the same way. Security has the biggest effect on pricing, and loan size, purpose and lender add to it. On a $1.5 million interest-only commercial loan, each 0.50% move is worth $7,500 a year. This figure is illustrative.
Ask your lender for a rate review first. Some will reduce the rate simply because you asked, particularly when you can show a competing offer. If yours declines, compare the market – and compare the total cost including fees, not the headline rate alone.
Check 2: Your Fixed Rate Expiry and Loan Maturity
A fixed home loan usually reverts to a higher variable rate once the term ends, unless you refix or refinance. Diarise the expiry date and review your options well before it arrives: refinancing to another lender, fixing again, splitting the loan, or asking your current lender for a retention rate.
Business and commercial loans carry fixed periods and maturity dates of their own. A maturity date means the lender expects full repayment or a refinance by that point, so diarise both dates and start the review early.
Leaving a fixed loan early triggers a break cost. When rates have risen since you fixed, that cost is usually nil; when rates have fallen, it can be significant. Commercial fixed rates price off wholesale swap rates, so the break cost moves with the market – ask your lender for a written estimate before you decide.
Check 3: Your Loan Features and Fees
Features shape what a loan costs beyond the headline rate. On a home loan, an offset account reduces the interest you pay while keeping your cash accessible, and redraw lets you withdraw extra repayments you have made. Fixed loans often limit both extra repayments and offset accounts.
On a business loan, look at line fees, establishment fees and early repayment fees. Asset finance usually carries a fixed rate, while cash flow facilities usually carry a variable rate – check that the structure suits the way your business actually earns.
Ongoing fees and package fees eat into any rate discount. Compare the total cost, and ask whether you are actually using the features you are paying for.
Check 4: Your Loan Structure and Its Purpose
Keep debt for different purposes on separate loans. Interest deductibility follows the use of the borrowed funds, not the property securing the loan. If you borrow against your home to buy an investment property or fund your business, the interest relates to the purpose of the borrowing – mixing personal and investment borrowing in one loan makes deductions hard to prove and easy to claim incorrectly.
Keep business borrowing separate from personal borrowing as well. Drawing on a business facility for private spending muddies both the deduction and your records. Match each facility to its purpose: fund long-term assets such as property and equipment with term debt, and fund seasonal cash needs with a working capital facility. A short-term facility used for a long-term asset creates refinance risk down the track.
Structure also matters when you upgrade your home. If you keep your old home as a rental, the loan against it becomes investment debt, and the order in which you repay your loans changes your deductions. Speak with your accountant before you restructure.
Check 5: Your Interest-Only Expiry
Interest-only periods have a set end date. Once it arrives, you start repaying principal over a shorter remaining term, and repayments can rise sharply. Note the date, model the new repayment now, and ask your lender whether a further interest-only period is available – policy differs between lenders.
Commercial interest-only periods end too. When they do, principal repayments start or a large balance falls due, so model the effect on your cash flow well before the date arrives.
Check 6: Your Term and Your Repayments
A refinance often resets your loan term back to 30 years. A longer term lowers your repayment but raises your total interest, and extra repayments work in the opposite direction.
Adding $300 a month to the $700,000 home loan at 6.90% cuts roughly five years off the term and saves around $192,000 in interest, assuming the rate stays constant. Small, regular amounts carry more weight than most borrowers expect.
For a business loan, match the term to the life of the asset and the rhythm of your cash flow.
Check 7: Your Borrowing Capacity
Lenders assess your loan at a buffer above the actual rate, and they treat self-employed income, rental income and existing debts differently between them. Lenders count your credit card limits rather than your balances, so cancel cards you do not use.
Business owners face an extra layer. Lenders assess self-employed income from tax returns and financials, and they also count business debt you have personally guaranteed when they assess your personal borrowing.
Since 1 February 2026, APRA has limited authorised deposit-taking institutions to writing no more than 20% of new lending at a debt-to-income ratio of six times or higher. Non-bank lenders sit outside this cap. If your debt is high relative to your income, your choice of lender matters – check what you are able to borrow before you plan a renovation, an upgrade or an investment purchase.
Extra Checks for Business Loans
Covenants and reviews. Business facilities often carry covenants such as interest cover, debt service cover or a maximum LVR, and most also carry an annual review. Check your position before your lender does – a rate rise lowers your headroom, because interest cover falls as interest costs rise. Speak with your lender early if your headroom narrows.
Security and guarantees. Check what secures each facility. Owner-operators often secure business debt against the family home and give personal guarantees, and cross-security links every asset to every loan, limiting flexibility to refinance or sell. Ask whether the lender releases security as the business repays debt or builds equity.
Lender type. Major banks generally price lowest for borrowers who meet strict criteria, while non-bank lenders offer speed and flexibility on complex applications at a higher rate. The right lender depends on your file, your timeframe and the facility. Approval can take from about a day for simple unsecured loans to several weeks for complex secured facilities, so start early.
When Is a Refinance Worth It?
A refinance carries costs: a discharge fee from your current lender, application or valuation fees at the new lender, and lenders mortgage insurance if your home loan LVR sits above 80%. Business refinances add legal and establishment fees, and a fixed loan adds a break cost. Cashback offers can help, but read the clawback terms.
Run a simple break-even test. If a switch costs $1,500 in fees and saves $230 a month, you recover the cost in under seven months. A small rate gap on a small balance rarely covers the cost, and a plan to sell soon shortens the time you have to recover it.
What to Gather Before You Speak to a Broker
A good review starts with the right documents. Gather your latest statements for every loan showing the rate, balance and fees, and note your fixed, interest-only and maturity dates. List all debts and credit card limits, and add your payslips, or two years of personal and business tax returns and financials if you are self-employed, along with recent bank statements.
For business loans, add your current year-to-date accounts, recent BAS, your ATO account statement, and your aged debtor and creditor reports, together with a schedule of every facility showing limits, security, covenants and guarantees.
Then write down your plans for the next two to three years. A renovation, an upgrade, an investment purchase, a business expansion or a change in income all affect the right loan for you.
A rate comparison is the easy part of a loan review. The harder part is fitting your loans to your plans, your tax position and your income, and that is where a broader finance conversation earns its place.
This insight provides general information only and does not constitute financial, legal or tax advice. Figures reflect information available as at 20 September 2026 and lender pricing changes often. Speak with your broker, accountant and financial adviser before making any decision.
Frequently Asked Questions
How often should I review my loans?
Once a year at minimum. Review again after a big change such as a new job, a renovation plan, a fixed rate expiry, a business facility maturity, or a large move in interest rates.
Does comparing rates affect my credit score?
Asking about rates does not. A formal loan application places an enquiry on your credit file.
Will my current lender match a better offer?
Some do. Ask before you refinance, and bring a written offer from another lender.
Is refinancing worth it if I am on a fixed rate?
It depends on the break cost. Get a written estimate and compare it with the saving over the rest of the fixed term.
Do self-employed borrowers face different rules?
Yes. Lenders assess income from tax returns and financials, and their policies on ABN history and company ownership differ, so lender choice matters.
Why do business loans cost more than home loans?
Business loans carry more risk for lenders and often have less standard security. Pricing reflects security, size, purpose and lender, and RBA data shows small businesses pay more than large businesses on average.
Does my business debt affect my home loan?
Yes, when you guarantee it personally or secure it against your home. Lenders count it when they assess your personal borrowing.
Should I use a bank or a non-bank lender for a business loan?
Banks generally price lower for borrowers who meet their criteria, while non-bank lenders move faster and flex more on complex files at a higher rate. A broker compares both against your situation.
Considering a Loan Health Check?
If it has been a while since your home or business loans were reviewed, I can look at your current rate, structure and borrowing position and tell you plainly whether it still stacks up.
Speak with me and the Wood Associates Finance team about a loan health check across your home and business lending, including commercial finance and refinance options.