Mortgage Health Check Result: Lower Rate, Shorter Loan Term and Stronger LVR
A recent LoanFi mortgage health check delivered a stronger home loan position for our customer: a 0.59 percentage point reduction in the existing interest rate, a 25-year loan term and an improved loan-to-value ratio from 90% to 80%.
A meaningful reduction in the customer’s existing home loan rate.
Improved structure without simply stretching the mortgage over a longer period.
A stronger equity position than the customer’s original lending position.
A mortgage health check should do more than find a slightly different interest rate. The real value is in reviewing the whole home loan position: interest rate, remaining term, equity, lender policy, repayment structure and the customer’s longer-term objectives.
That is exactly what we focused on in this recent LoanFi review.
What did we achieve for the customer?
1. Existing interest rate reduced by 0.59 percentage points
Reducing an existing mortgage rate by 0.59 percentage points can materially improve a borrower’s interest position over time, particularly on a substantial loan balance.
We have intentionally not published a dollar saving because the exact benefit depends on the loan balance, repayment structure and future rate movements. What matters is that the customer now starts from a significantly stronger rate position than before the review.
2. Loan term reduced to 25 years
A common refinancing mistake is focusing only on the lowest possible monthly repayment. One way to make repayments look smaller is to restart the loan over a fresh 30-year term.
In this case, the improved structure uses a 25-year loan term. That matters because a good refinance outcome should consider both today’s cash flow and how long the borrower remains in debt.
3. LVR improved from 90% to 80%
The customer’s original lending position was around a 90% loan-to-value ratio. Following the mortgage health check, the LVR was reduced to approximately 80%.
LVR is an important measure used by lenders when assessing the relationship between the loan amount and property value. A stronger equity position can improve the range of lending options available, subject to lender policy and the borrower’s overall circumstances.
Why this is a strong mortgage outcome
The quality of this result comes from the combination of improvements rather than one number in isolation.
- Lower rate: 0.59 percentage point reduction.
- More disciplined loan structure: 25-year term.
- Improved equity position: LVR reduced from 90% to 80%.
- Potential long-term savings: lower pricing combined with a controlled term can materially improve the overall mortgage position.
Quality mortgage broking is about the outcome, not just the rate
Home loan advertising often focuses on one number: the interest rate. But borrowers do not live with a rate in isolation. They live with the repayment, remaining term, fees, features, debt level and total cost of the mortgage.
At LoanFi, our approach is to review the loan as a complete financial structure. That means checking whether the current lender remains competitive, whether the property has built enough equity to improve LVR, whether refinancing costs make sense and whether the proposed term supports the customer’s goals.
Compare the rate being paid against suitable alternatives and current lender pricing.
Assess the customer’s current property value and how the resulting LVR affects available options.
Avoid making repayments look better only by unnecessarily extending the mortgage.
Consider repayment impact, long-term interest, flexibility, fees and customer objectives together.
Meet Subodh Gaudel — Nepali mortgage broker in Canberra serving clients across Australia
Subodh Gaudel
Founder and Mortgage Broker, LoanFi Finance & Mortgage
Based in Canberra, Subodh works with home buyers, homeowners and investors across Australia. He supports clients in Nepali, Hindi, English and Urdu and focuses on clear loan comparisons, quality mortgage structuring and measurable customer outcomes.
For Subodh, mortgage broking is not simply about submitting a loan application. It is about understanding where a customer is today, identifying what can realistically be improved, and then structuring a solution that makes financial sense.
Why Nepali homeowners should review their mortgage regularly
Many borrowers arrange a home loan and leave it unchanged for years. During that time, property values can move, the loan balance can reduce, interest rates can change and lenders can introduce different pricing.
A borrower who originally purchased at around 90% LVR may later be in a materially stronger equity position. That can change the refinance conversation.
- Is my current interest rate still competitive?
- Has my property equity improved my LVR?
- Could I reduce the loan term rather than extend it?
- Would refinancing actually save money after switching costs?
- Are my offset, redraw and repayment features still suitable?
- Could my current lender offer better pricing without a full refinance?
Can LoanFi help outside Canberra?
Yes. LoanFi is based in Canberra and provides mortgage support to clients across Australia. Subodh works with customers remotely as well as by appointment from LoanFi’s Amaroo office.
What makes a mortgage health check worthwhile?
A worthwhile review should leave you with a clearer understanding of your current mortgage and whether there is a genuine opportunity to improve it. The answer may be refinancing, renegotiating with the current lender, changing the loan structure — or doing nothing if the existing loan already remains competitive.
Could your home loan be in a better position today?
If your mortgage has not been reviewed recently, your equity, LVR and available lender options may be different today. A mortgage health check can help determine whether your current structure is still suitable.
Our recent customer outcome — a 0.59 percentage point rate reduction, 25-year loan term and LVR improvement from 90% to 80% — shows why it can be worthwhile to review the whole mortgage rather than simply accepting the existing loan unchanged.
Frequently asked questions
What is a mortgage health check?
A review of your current rate, balance, remaining term, equity position, LVR, fees and loan features to see whether the mortgage still suits your circumstances.
Does a mortgage health check always mean refinancing?
No. Sometimes the current lender may remain suitable or may offer improved pricing. The purpose is to compare realistic options before deciding.
Why can 80% LVR matter?
An 80% LVR means the loan is approximately 80% of the lender-assessed property value. Lender policy varies, but a lower LVR can improve the range of options compared with a higher-LVR position.
Can Subodh help Nepali borrowers outside Canberra?
Yes. LoanFi is based in Canberra and serves clients across Australia, including Sydney, Melbourne, Adelaide and Perth.
Book your LoanFi Mortgage Health Check
If your home loan has not been reviewed recently, speak with Subodh Gaudel at LoanFi Finance & Mortgage. We can review your current rate, LVR, loan term and available options and explain whether there is a genuine opportunity to improve your position.
Book a mortgage health check5 Isis Close, Amaroo ACT 2914 — By appointment only • 0452 572 960
Important: This case study describes a specific customer outcome. Results vary depending on loan balance, property value, lender policy, interest rates, income, expenses, credit profile and other individual circumstances. It is not a guarantee that another customer will achieve the same result. General information only.