How old is your home loan?
Lenders price new borrowers better than existing ones. The ACCC put a number on it, and the phone call to fix it is short.
$1,400
the first-year saving the ACCC calculated for a $250,000 loan three to five years old moving to the average new-loan rate
What this is
Lenders compete for new borrowers and rely on existing ones staying put. The ACCC's Home Loan Price Inquiry put numbers on it: borrowers with loans more than ten years old were paying on average about 104 basis points more than the average rate on new loans, and it calculated that a borrower with a 250,000 dollar loan three to five years old could save more than 1,400 dollars in the first year simply by moving to the average new-loan rate. The inquiry reported in 2020; the structure it described has not changed.
Does it apply to you?
- Anyone whose loan is more than a couple of years old
- Anyone who has never asked their lender for a better rate
- Anyone whose fixed period is about to end and will roll to a revert rate
How to do it
- Find your current rate on your latest statement, and the rate your own lender advertises to new borrowers today.
- Ring your lender's retention line, say you are comparing, and ask them to match their new-customer rate.
- Get the answer in writing, and check whether any fee applies.
- If they will not move, compare lenders. The ACCC found borrowers with older loans pay the most.
Where people lose the money
Comparing your rate to the cash rate.
Compare it to what your own lender charges new customers for the same product. That gap is the one you can close with a phone call.
Refinancing without counting the costs.
Discharge fees, new application fees and lenders mortgage insurance can consume the saving. Work out the break-even before moving.
Letting a fixed rate roll to the revert rate.
The revert rate is usually well above what the same lender offers new borrowers. Diarise the expiry and negotiate before it lands.
Questions
Does asking for a better rate hurt my credit file?
Asking your existing lender to reprice does not involve a credit enquiry. Formally applying to a new lender does, so it is worth asking your own lender first.
Is this financial advice?
No. It is a summary of what the ACCC published about how lenders price loans. Your own numbers decide whether moving is worth it, and a broker or adviser can help with that.
How old are the ACCC's figures?
The final report was published in November 2020. The figures are of their time; the pattern it identified, that older loans pay more, is the durable part.
What should I actually say on the call?
That you are comparing rates, you know what they advertise to new borrowers, and you would like the same. Ask for the answer in writing.
Where these numbers come from
- ACCC, “Home loan borrowers missing out on significant savings by not switching”, Home Loan Price Inquiry final report, November 2020 · read 2026-09-22
Last gone over 2026-09-22. Figures change; the link above is always the current one.