Mortgage strategy • Refinancing
Stop paying the loyalty tax
Your lender counts on you going quiet after settlement. Within 18 months, the same bank will offer sharper rates to new borrowers than to loyal ones. Here’s how we flip the leverage back to you.
Amelia Hart
Why the loyalty tax exists
Lenders price aggressively to win new customers while assuming existing clients will stay put. This creates a silent tax: borrowers on revert rates that are 0.40%–1.00% higher than the market, even if their risk profile improved. The fix is not yelling at your bank — it’s showing them competing term sheets.
Three moves to make banks chase you
- Collect the proof. Download the last six months of repayments plus the original loan offer. Lenders need evidence that you have been a model borrower.
- Benchmark at least three alternatives. We pull live pricing from majors, mutuals and wholesale funders. Each quote includes comparison rate, cashbacks, discharge fees and break-even month.
- Give your current lender one shot. We table the best offer and a deadline. If they match it, great. If not, we already have valuation slots booked with the challenger lender.
Signals that trigger instant repricing
Even before a refinance, there are data points that make retention teams move quickly:
- LVR now sits under 80% thanks to capital growth or extra repayments.
- Income increased or stabilised (e.g. probation finished, business BAS trending higher).
- Multiple products with the bank (cards, offset, business facilities) that they risk losing.
We package that narrative plus the competing offers and escalate it beyond call-centre level.
Next step
Email your latest lender statements to info@newgenfinancebrokers.com or call 0451 414 800. We’ll run the loyalty-tax audit, show you where you stand, and either reprice the current loan or refinance you into a better structure.