When Did You Last Check Whether Your Home Loan Is Actually a Good Deal?
Your interest rate matters, but it is not the only thing that makes one loan a better choice than another — especially if your home and business finances overlap.
Written by: Melissa Cunliffe (CA)
What has changed?
ASIC released Report 840 on 13 October 2026 after reviewing mortgage broker groups and how they demonstrate that loan recommendations are in customers’ best interests.
ASIC says a more expensive loan can sometimes be appropriate, but the additional cost needs to be justified by relevant benefits. The review was about consumer home loans, not a finding that all brokers or business loans are unsuitable.
Why should you care?
Imagine you have a $600,000 home loan.
A rate difference of 0.50 percentage points equates to roughly $3,000 in interest over a year on a balance that stays at $600,000, before allowing for repayments, fees and changes to rates. But the cheapest headline rate may have restrictions on redraw, offset access or repayments. Compare the whole arrangement.
What we are seeing in practice
A couple operating a family business may have their home loan, business overdraft and equipment finance with one bank.
They ask whether moving the home loan will affect their business security. That is exactly why a refinance should begin with understanding the loan documents and guarantees, not only a lower rate advertised online.
What can you do now?
List every home and business loan, its rate, balance, fees, security and expiry of fixed-rate terms.
Compare total costs and useful features over the period you expect to hold the loan.
Ask the broker to explain in writing why the recommended option suits your circumstances.
Before refinancing, check discharge fees, guarantees and whether cross-securities are involved.
Something to think about
If you had to explain why each loan is with its current lender, could you do it?
At 4P’s Future Accounting, we help family businesses understand the numbers, protect what they have built and plan for what comes next.
The right answer depends on your circumstances, so obtain specific advice before acting.
Reviewing your home loan or considering refinancing? Contact 4P's Future Accounting to discuss the financial considerations and how your home and business finances may overlap.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
