End of financial year review: Does your home loan measure up?

The end of a financial year often brings a natural focus on finances — especially if you are investing in property as you prepare for tax returns. As one of your biggest financial commitments, it's the perfect time to review your home loan to ensure it meets your goals for the financial year ahead.
Some borrowers have already kicked off their reviews, with the latest Mortgage Choice Home Loan Report revealing the value of refinance loans was up 30 per cent year-on-year over the March quarter.
So, is it worth finding out if your home or investment loan is still giving you the best bang for your buck?
The short answer is of course yes. Your reasons for reviewing your loan will be different to your neighbours', but it's worth taking time to review your loan to ensure it's working for you. Reach out to a mortgage broker who can compare your loan against what's in the market to see if you can access a sharper rate, an improved loan structure, or help you understand if you can tap into your equity.
This end of financial year, ask yourself these four questions.
Can I access a better rate?
The Reserve Bank of Australia has already delivered two rate cuts this year, and the market is predicting a third cut on 8 July. As we see more cuts to the cash rate, competition will ramp up as some lenders pass on the savings in full, and others don't.
Some lenders are offering great rates to attract new customers, so if your home loan rate doesn't start with a 5, you might be paying too much.
Can I claim tax deductions?
If you have a mortgage on an investment property, now is the perfect time to take stock of the interest you paid, as well as any expenses related to property maintenance or management as you may be able to claim tax deductions relating to these expenses on your next return.
Will a better loan structure offer me any benefits?
Refinancing could help you access different loan features or a structure that better suits your needs, such as an offset account or redraw facility.
Am I rolling off a fixed rate?
If your fixed-rate term is coming to an end soon, it's the right time to shop around. When your fixed term ends, your lender will automatically move you onto a standard variable rate loan, but it may not be the most competitive on offer.
Can I access equity?
Property values continue to rise, with national values up 4.12 per cent year-on-year according to the May PropTrack Home Price Index. If your property has increased in value while you've had your home loan, you may have equity built up that could help you negotiate a lower rate or even put you in a position to upgrade your home or purchase another property.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

SBS Australia

26 minutes ago

• SBS Australia

Amy thought she had a secure job as an international student

Back in 2023, international student Amy - not her real name - thought she had found a secure job in Darwin. The then 30-year-old was hired as a student service officer, by vocational education provider International House Sydney, where she was studying for an Advanced Diploma in Program Management. And unlike cash-in-hand casual jobs that many international students and new migrants often take, Amy felt secure with the position. "It was a part-time permanent job, because I was on a student visa, so I could only work part-time, but it was a permanent contract." But in January 2025 the company went into liquidation. Amy's Australian colleagues were able to access the Australian government's Fair Entitlements Guarantee, or FEG. The Guarantee allows people to claim back wages, redundancy payments and other entitlements after a company closes. But because Amy was an international student, she wasn't eligible for the scheme meaning that until today, she still hasn't been paid some wages or other entitlements after the company closed. "So I thought that I would be more protected if I had a permanent contract. But then, when this happened, I realised that as an migrant, I do not have the same rights. I cannot access the same, yes, the same safety net as an Australian or a (permanent) resident." According to International House Sydney's liquidator, PKF Melbourne, the education provider had been trading at a loss from at least June 2022. By the time it went into administration, it had around 3,800 students and 318 staff. Amy says they were informed by the liquidator that if funds remained after the liquidation, staff who couldn't access the FEG would be prioritised for repayment. SBS News have put questions about follow-up payments with migrant staff to PKF Melbourne, but they didn't reply specifically to the question. It's an issue facing many small and medium-size education providers after the federal government tightened international student enrolments last year. Felix Pirie is the chief executive of Independent Tertiary Education Council Australia. "We saw a big downturn for students to apply, to come or even consider lodging an application to come to Australia to undertake skills training courses but also English language programs." According to a report by the ITECA, in 2021 there are around 162,000 students enrolling in independent higher education providers with over half of them international students. Mr Pirie says the increased fees for visa applications and the slowdown of visa process hit his sector most. "The outcome of these things is that independent providers are the ones singled out at the end of the day, or they are the one that certainly feels the biggest impacts, and it's the people they employ. So they employ significant workforce, and when their business start to suffer, those people lose their jobs." If an international student finds their education provider goes into administration, they have the right to access the government's Tuition Protection Service. This helps students find alternative course options and get a full refund from the provider. Matt Kunkel is the Chief Executive Officer of Migrant Workers Centre in Victoria. He says many international students are also employed in the sector. "What the other impact on this is for many migrant workers is that once they complete their education in Australia, many of them are moving into the education sector themselves, and in particular the international education sector. So for those workers who have come to build a life, to get an education and build a life in Australia, these international caps are putting pressure on jobs in the sector." In 2019, the then Coalition government released the final report from the government's Migrant Workers' Taskforce, which recommended an expansion of the FEG to all migrant workers. The Migrant Workers' Taskforce was established in 2016 to tackle migrant worker exploitation but since the 2019 report - the FEG has yet to be expanded. In 2025 the Albanese Labor government announced a consultation process looking into reforms to the FEG, after some businesses were found to have misused the scheme. Mr Kunkel says the federal government needs to allow international students and migrant workers to access the FEG as soon as possible. "Our visa system is built around this idea that international students are here just to study. But the reality is that many of those international students are here working and studying in Australia, and we need a visa system that allows those workers who are coming, those international students who are coming to Australia to be able to live a dignified life as they study and get that education." Seri Feldman-Gubbay is a senior solicitor at Redfern Legal Centre. She also agrees that there's a gap between the safety net for local workers and international students. "I think that the biggest thing is that a lot of Australian employing businesses rely on the fact that international students will be unfamiliar with the legal system and the rules in Australia. And so there will be, I guess, a false sense of confidence that is this employer is going to do right by me, when, in actual fact, a lot of employers take advantage of that lack of knowledge to then do the wrong thing and leave people in a really bad position." And without the FEG scheme, Ms Feldman-Gubbay says for employees like Amy taking claims to court is one option. Amy wants to see a change. "I don't think I will ever be compensated, because I doubt there's money to be found, but I would really hope that in the future, nobody else has to go through this situation, or also for there to at least be something that is more talked about. I have not heard about this until it happened to me. I think that every migrant should know that this is something that could happen to them."

Daily Telegraph

an hour ago

• Daily Telegraph

NSW suburbs that outperform top super fund

NSW homeowners in over 200 suburbs could be building retirement wealth faster than their super fund, new research reveals. Comparison site Finder has revealed how Australia's super funds compared to that of property price growth over the past ten years. The research found that a shocking 23 per cent – equivalent to around 4.6 million people – said they didn't have enough money in their super fund or other investments to get by in retirement. Australian Retirement Trust's super savings high growth fund had the highest returns, with a 8.79 per cent annual 10 year return, yet there were over 200 suburbs in NSW that out performed that. Houses in Millfield, Lockhart, Brunswick Heads and Clareville were among the top performers, growing by an average of 11-16 per cent annually over the past 10 years. MORE: 'They're off': $962m king's look into real estate woes Retired publican lists $12m apartment How you can save this end of financial year The average 10-year performance across all super funds is 5.7 per cent a year, according to Finder, while Sydney's 10 year annual compound property growth rate was 6.4 per cent. Finders money expert Richard Whitten said the more attention you give your superannuation now, the better off you'll be. 'It's truly a shame to reach retirement age only to find you have 'too little too late.' You can avoid this by taking proactive steps to engage with your super as soon as possible,' he said. He added that to have a comfortable retirement, a single person might need around $595,000 in their super by 67. 'Many Australians are still well below the amounts suggested for a comfortable retirement, making proactive engagement even more critical.' Ben Kingsley, managing director of Empower Wealth Advisory and co-author of 'How to retire on $3,000 a week,' said your return on investment could be higher with property, but warned there were always risks involved. 'If you're going to invest in property you don't want to be speculating, you want to be investing for the decades, not the short period of time,' he said. MORE: Singles face impossible property reality 'One of the advantages of investing in property is it isn't locked away until you're in your 60s. It gives you the ability to leverage from those returns, to accelerate some growth in further returns – use the proceeds or equity to add to your initial property portfolio, which is something to consider.' '(Super) is a sort of set and forget for most Australians, with property when you do have ownership you have control, you can tinker with the property itself you can add value to the property,' he added. He noted it was important to diversify when it came to setting up for retirement. 'You can't save your way to retirement, you need to put your money to work, whether that's additional contributions to super, or investing in shares or property, you're better off starting to think about it in your 30s,' he said. Canstar's director of data insights, Sally Tindall, said Aussie's shouldn't be choosing between a healthy super amount and a property, but should aim to invest in both. 'It comes down to personal preference, but open your mind to achieving both. Don't put all your eggs in one basket,' she said. 'It's not a simple comparison and there's a multitude of factors, there's tax implications on both sides, and whether you're purchasing as an investor or an owner-occupier,' she said. Recent Labor government tax changes, which apply an additional 15 per cent tax on earnings for super balances exceeding $3 million, would affect an estimated 80,000 Australians (0.5% of super account holders). MORE: Rare backyard find that can kill you 'It will be interesting to see how that plays out over time, as the government has said that $3m won't be indexed, which could then start to impact many more people in many years to come as the number of people with that sum starts to increase, so that's another factor in the equation.' With the super guarantee increasing to 12 per cent on July 1, Ms Tindall said this may encourage some people to take the property route, knowing their employee is contributing more to their super. 'It's also not just the super vs. mortgage, there are plenty of other things like shares people could be putting their money into. It's important to understand what the mix is and understand the pros and cons and the sacrifice you might have to make, as well as the benefits you can get from each one.' MORE: New builds vanish amid loan slump TOP 20 NSW GROWTH SUBURBS OVER 10 YEAR AVERAGE

News.com.au

an hour ago

• News.com.au

‘Sickening': Sydney unit owners face levies of up to $220,000 to replace flammable cladding

Owners in a Sydney apartment building blindsided by eye-watering special levies of up to $220,000 to replace dangerous flammable cladding say they have been 'failed' at all levels and left facing ruinous out-of-pocket costs. Sluggish remediation works, drawn-out legal battles and onerous retrospective changes to building codes have left many owners in a seemingly never-ending limbo. Ferres Wang, 43, purchased her one-bedroom unit in Pyrmont's Harbour Mill Apartments off the plan in 2012 for $580,000. The stunning development, built on the site of the old Edwin Davey & Sons Flour Mill near the Sydney Fish Markets, comprises 136 apartments across two 10-storey towers with a distinctive chequerboard exterior. Ms Wang, a tech entrepreneur, said she was attracted to the location close to Darling Harbour. 'Also the design is quite cool,' she said. The building, completed in 2015, was one of dozens identified as high-risk by the NSW government's cladding taskforce which undertook a survey of local properties in the wake of the 2017 Grenfell fire in London which claimed 72 lives. But five years on from the initial fire safety order from the City of Sydney, and nearly two years after entering a contract with a cladding remediation firm, the multimillion-dollar works have stalled. The builder, Hitech Remedial, has identified additional scope that will more than double its initial contract. On Tuesday, owners will be asked to vote on variations totalling $5.96 million, including additional cladding removal, vertical cavity barriers and replacement balustrades. The initial budget for the works was $7.8 million, $5.4 million of which was Hitech's contract. The works are being funded by a no-interest loan through the NSW government's Project Remediate, with up to $19.5 million available. 'The variations are required to properly undertake the work to remove and replace the ACP cladding, and deal with other issues identified during the repairs, and to comply with a fire order from City of Sydney Council to remove the ACP cladding,' Tuesday's strata meeting notice states. Ms Wang said the huge additional cost has left residents stunned. 'On average, each owner here is now facing a $70,000 to $220,000 levy, and we've been warned that even more variations are coming next year,' said Ms Wang, who will be on the hook for $70,000 for her 60 square metre apartment if the variation is approved. For penthouse owners, the bill will be up to $220,000. 'One is retired, he [told me] this is their entire life savings,' Ms Wang said. It's expected residents will be required to begin paying special levies for the works in the first half of next year. Ms Wang, who runs data and AI start-up DataNoLie, says she will be forced to divert money she would have used to invest in growing her business. 'For me this really is hardship,' she said. 'This is a systemic disaster for apartment owners across NSW. It feels like the entire system — strata, builder, tribunal, regulatory bodies — has failed us. The government's retrospective cladding laws place the full financial burden on owners, with no strong legal or audit mechanisms in place.' Ms Wang filed a case with the NSW Civil and Administrative Tribunal (NCAT) seeking to block Tuesday's vote but her request for an urgent hearing before the meeting was denied. 'I was told this didn't qualify as 'hardship' despite the enormous financial burden and the lack of legal safeguards being followed,' she said. Around 30 per cent of owners live in the building, and Ms Wang said meetings to approve the remediation budgets were only attended by around 30 people. 'More than 100 owners, they don't know, don't care or are Chinese investors overseas,' she said. A spokeswoman for Hitech Remedial declined to comment, saying enquiries should be directed to Project Remediate. The owners corporation has also commenced NSW Supreme Court proceedings against the original developer, Leichhardt-based Ceerose, over the cladding defects. That case is listed for a directions hearing in July. 'We confirm that there are legal proceedings brought by the owners corporation involving Ceerose which are currently in procedural directions stages and include claims related to cladding,' a Ceerose spokesman said. 'The proceedings are being defended by Ceerose.' Similar stories are playing out across the state. As of early 2023, the NSW government had inspected 4182 buildings, with remediation underway or ordered by the relevant authority for 192. The NSW Audit Office found in April 2022 that most high-risk buildings in NSW had likely been identified. A spokesman for the NSW Building Commission said Project Remediate was currently working with around 80 owners corporations to remove combustible cladding through packages of interest-free loans and construction program management services. 'The program also helps owners corporations to resolve underlying conditions that are sometimes revealed when cladding is removed, saving owners from potentially costly repairs in the future,' he said. 'This includes fixing issues with waterproofing or structural components of the building to ensure the new cladding system is safe, weatherproof and structurally sound. Where the underlying issues have been caused by defective work by the building's original builder or developer, NSW legislation allows owners to claim using statutory warranties and other protections available within the statutory periods specified under the legislation.' Strata lawyer Amanda Farmer said since the closure of Project Remediate to new applications, owners had largely been left on their own. 'As far as I'm aware there is no state or federal grant program to help strata buildings cover the cost of replacement,' she said. 'What we're seeing is individual owners are now having to shoulder 100 per cent of these costs coming to them in the way of large special levies at are running into $30,000 a lot, $50,000, up to six figures. It's sickening.' Ms Farmer cautioned against taking the legal route. 'The problem with suing is it takes many years to progress through the court system and you may end up with something of a Pyrrhic victory if the builder and developer have nothing, are straw companies by the end of it,' she said. Other owners have previously sought remedy from builders and developers alleging breaches of statutory warranties under NSW's Home Building Act 1989. In 2020, NSW passed the Design and Building Practitioners Act, which imposed new statutory obligations to ensure designs and building work are compliant with the Building Code of Australia (BCA), with a 10-year duty of care period. 'There may be now in NSW the opportunity to claim under a 10-year warranty period, [but] that's very new and still being tested through the courts,' Ms Farmer said. 'I think buildings should rightly be very careful commencing any litigation now. It can take years to resolve and in the meantime you're sitting in a building with potentially dangerous cladding.' The harsh reality is owners in affected buildings have few options. 'A building has a very strict legal obligation to properly repair its common property, so if it has received advice from an expert fire safety engineer that this is dangerous combustible cladding then the law is very well settled, the owners corporation has to act on that and protect its occupants,' Ms Farmer said. 'It's a really unenviable position for strata owners to be in but from a legal perspective they don't have a choice.' With remediation quotes typically running into multiple millions, many buildings are opting to take out strata loans offered by a handful of boutique lenders. 'It can be a 10 or 20-year loan at interest rates over 9 per cent,' Ms Farmer said. 'In my experience that is usually what most buildings are opting for because they're finding most owners don't have the cash funds. Having a strata loan on the books then impacts the value of everybody's investment. Purchasers looking to buy [will knock the price down].' Ms Farmer said many owners were being forced to simply sell. 'That is sometimes the only option, and as I said it's a really difficult decision because you're going to be taking a hit on your sale price,' she said. 'If you're in a position you have to sell, you have to take what you can get. I'm definitely seeing more of that, not just in the cladding context but all around with our ageing buildings that need a lot of work very fast.' In NSW, former Building Commissioner David Chandler oversaw the most extensive reforms to the state's defect-plagued apartment building sector in response to years of high-profile disasters, like the mass evacuation of residents from Opal Tower in Sydney Olympic Park on Christmas Eve 2018. While the crackdown on dodgy developers was long overdue, concerns have been raised that the onerous requirements under the Design and Building Practitioners Act have sent remediation costs for older buildings soaring. 'The side effect of that very strict legislation is that it also applies to existing buildings, much older buildings that are doing remedial work,' Ms Farmer said. 'Works are now three times, four times more expensive under this new legislation. A leaking balcony that may have cost $50,000 to fix in 2020 is now costing $200,000. That is a big problem, and there's a fair bit of advocacy being done to government at the moment trying to get some relief.'