Why you should review your home loan rate every six months

Key points

• Borrowers who never ask about their home loan rate may pay more than new customers do, a gap known as the loyalty tax. Mortgage broker Steven Korner of The Finance Korner recommends reviewing the rate every six months.
• Rates, lender offers and loan-to-value ratios can all change in that time. A review does not always lead to switching, because break fees, discharge fees, lenders mortgage insurance and credit enquiries can offset any saving.
• The Finance Korner reviews every client's loan twice a year and presents a plain-English recommendation.