The Importance of a Loan Health Check — Why Annual Reviews Matter
When you’re buying a home or investment property, securing the right loan is a big milestone. But it’s only the first step. Over time, both the financial markets and your own personal situation can shift — and that’s why an annual “loan health check” is so important. As your buyer’s agent-partner, I’d like to explain why making time each year to review your loan is smart, and how the dynamics of the market and your life can change what’s “right” for you.
Why an Annual Review?
You may think once you’ve locked in a loan, job done. But the truth is, a loan is not “one-and-done”. It’s a financial tool that needs tuning. At ASK Financials, one of the key commitments is “Annual Reviews to Keep You on Track”.
Here are a few key reasons:
Market conditions change. Interest rates, lender policies, valuations, all shift. What was a great deal last year may be sub-optimal this year.
Your personal situation evolves. Job changes, family growth, new investments, and changing goals, these all affect what loan structure suits you best.
Your loan may drift out of alignment. Maybe you started with a variable rate, but a fixed rate might make sense now; maybe you had no extra repayments but now you do; perhaps your loan term isn’t optimised anymore.
You might miss opportunities. No review means missing the chance to refinance, restructure, consolidate debt or unlock equity.
Ensure long-term strategy works. Buying property is often part of a bigger financial plan — aligning your loan to that plan is crucial.
Market Conditions: What You Should Keep an Eye On
As markets evolve, your loan environment changes. As your buyer’s agent I’m always looking out for how these shifts impact your borrowing and servicing. Some key market factors:
Interest rate movements. For example, when the cash rate goes up (or is expected to), lender rates tend to follow. The cost of servicing your loan could increase.
Lender product changes. Which banks or non-banks are offering what? Lenders might tighten or loosen criteria, change fees, change features. At ASK Financials you get access to 45+ lenders, which broadens the options. Ask Financials
Property values and equity. If your property has increased significantly in value, you may have more equity — giving you new possibilities (e.g., refinancing, investment property, or debt consolidation).
Regulatory or policy shifts. Government incentives, tax rules, lending standards can change — altering what is viable or optimal for you.
Economic context. Job market, inflation, income growth, consumer sentiment — all feed into both your personal capacity and lender appetite.
Because these factors are always in flux, a loan that matched you perfectly last year might not be the “best fit” any longer.
Personal Changes: Your Loan Must Keep Up With You
Your life doesn’t stay still. And your loan should reflect where you are now, and where you want to go. Here are personal-change triggers that flag a loan review:
New job, income increase or reduction. A promotion or salary raise may allow you to pay more, shorten term, or fix the rate. A reduction in income may indicate you need to restructure to reduce risk.
Family changes. Marriage, kids, dependants, or solo living — all have cost implications, affect your budget, cashflow, and borrowing capacity. Other investments or debts. Perhaps you bought an investment property, started a business, took on a car loan, or opened new credit. All this changes how your loan should be structured.
Change of goals. Maybe you’re moving from owner-occupier to investor, or want to pay off your home sooner, or release equity for other opportunities. Your loan needs to reflect that.
Lifestyle changes. For example, you want more flexibility (reducing fixed repayments), travel more (saving up), or retire earlier (so you need to service differently). Loan features out of sync. Maybe you fixed your rate when you had low repayments and now you prefer variable to access extra repayments, offset account, redraw, etc.
By having an annual review, you and your broker at ASK Financials can ask: Does this loan still fit? If not, what should we change?
Real-Life Scenario: Why It Matters
Imagine you took out a home loan three years ago when rates were low, you were on a fixed salary, no kids, everything stable. Since then: you got a promotion, you had your first child, you opened a small business on the side, and your time horizon changed (you plan to sell sooner than you thought). Meanwhile, the market rates have climbed, lenders have changed their pricing and your home value has increased. Your original loan might still “work”, but it may no longer be optimal. Without a review, you might be paying more than necessary, missing better features (like an offset account), or be on a structure that doesn’t match your new goals. An annual health check catches that.
Why Partnering with ASK Financials Makes a Difference
At ASK Financials, you’re not just getting a broker, you’re getting a partner. They emphasise: “Your needs evolve, and so should your loan.” As a buyer’s agent working closely with you, I bring the property-side lens: what you’re buying, why you’re buying, how you’re going to use it. ASK Financials brings the loan lens: the structure, features, lenders, servicing, and strategy. Together we: Align property decisions with loan strategy.
Make sure your loan remains aligned with your property investment strategy, not just the property itself. Keep you informed about market shifts and what they mean for your loan. Provide disciplined annual reviews so you don’t drift away from your goals.
Make Sure Your Loan Still Fits Your Life
Owning a property is one of the biggest financial commitments you’ll make. The loan behind it is just as significant, and it deserves more than “set it and forget it”. When market conditions change and your personal situation evolves (often both happen at once), your loan may start working against you instead of for you.
By scheduling an annual loan health check with ASK Financials (and collaborating through your buyer’s agent), you stay in control. You’ll be confident your loan still fits, your strategy is sound, and your path toward property and financial freedom remains on track. You can also book a free call to discuss a personalised strategy.
If you haven’t had your loan reviewed in the past 12 months, or even if you have but you’ve had significant changes in your life or goals, now is a great time to book a strategy session.
