4 ways you can make savings on your home loan in 2025

Looking for ways to reduce the cost of your home loan? We take a look at some of the key methods available.

With the cost of living on the rise, lots of Aussies are feeling the squeeze on their home loan repayments.

But the good news is that there are solutions available.

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1. Refinance for a better interest rate

Although a lot of living expenses have been going up, we've also seen home loan interest rates take a dip.

So if you haven't checked your current home loan's interest rate for a while, now might be the time.

Lower interest rates can save you thousands of dollars over the lifespan of the loan, as you'll be paying less in interest fees.

Similarly, it can also reduce your monthly interest repayments.

This can help you free up cash for other costs or allow you to funnel funds back into the loan and pay it off more quickly.

At the moment, Greater Bank has a range of home loans available that currently offer some of the best rates on the market

• Great Rate Home Loan Variable rate 5.19% p.a. (comparison rate 5.20%p.a.^{^})
• Ultimate HL 2 yr fixed rate 4.79% p.a. (comparison rate 6.84%p.a.^{^})

Refinancing is a significant financial decision, and it may be worth speaking to a professional before proceeding.

However, under the right circumstances, it can help improve your financial situation.

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2. Score a cashback

One of the other advantages of refinancing is that you can sometimes score a cashback as part of the process.

Let's take a look at Greater Bank as an example.

Greater Bank offers a couple of ways to refinance and get a cashback.

You can apply online or speak to an expert lender if you feel you need additional support.

You can get a cashback of up to $2,500 when you speak to an expert lender.⁺⁺

If you apply via Greater Bank's site, you can get up to $3,000 cashback.*

As the application process for the Digital Home Loan is 100% online and you're dealing with the bank directly, you can usually get the process sorted within a few days.

These funds can be used however you want!

You might want to use them to pay back towards the mortgage and help get it paid off more quickly.

Alternatively, you might simply use them to cover other expenses.

3. Make extra repayments

Making extra repayments may seem counterintuitive when you're trying to reduce the cost of a loan now.

However, over the longer term, it can result in significant savings.

In tandem with refinancing and a lower interest rate, you can pay more towards the principal.

So your home equity grows faster, allowing you to draw on it for investments or own it outright sooner.

Greater Bank offers a variety of home loans that allow for additional repayments to be made.

To find out how much you'd potentially save if you refinance with Greater Bank, you can use a repayment calculator.

4. Use loan features effectively

It's easy to think of home loans as just being about paying back money with interest.

But it's important to look closely at what sort of features they include, too. They can make a big difference to how effectively (and speedily!) you can pay off your home loan

Let's look at offset accounts and redraw as examples.

• Simply put, offset accounts allow you to "offset" the amount of interest that you're charged on your loan. So the more money you've got in your offset account, the less interest you'll be required to pay.
• Redraw allows you to pull money back out from the loan, from extra repayments that you've already made. This can be an effective way to access funds without requiring additional loans.

When used correctly, both features can lead to significant cost savings. Greater Bank offers home loans that feature both offset accounts and redraw.

Learn more about refinancing with Greater Bank today

More information about Greater Bank

Interest rates effective as of 09/09/2025 and are subject to change without prior notice.

^Comparison rate is based on a rate loan of $150,000 over 25years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

*Online Cashback Offer available for eligible loan applications submitted via our online application channel. LVR<80%, $2,500 cashback for loans ≥$250k or $3,000 cashback for loans ≥$500k. Only one (1) Cashback Payment per eligible loan, and for first eligible loan only. Not available in conjunction with any other promotional payment. Offer may be varied or withdrawn at any time. See the full Cashback Offer Terms and Conditions at greater.com.au/digital-home-loan.

⁺⁺Cashback of $2,000 for eligible home loans $250-$499k or $2,500 cashback for loans ≥$500k available for refinance applications submitted via Greater Bank lenders (not online), with 80% LVR or below. Only one (1) cashback payment per eligible loan, and for first eligible loan only. Not available in conjunction with any other promotional payment. Offer may be varied or withdrawn at any time. See the full Cashback Offer Terms and Conditions.

Terms, conditions, fees, charges and credit criteria apply. Greater Bank, part of Newcastle Greater Mutual Group Ltd ACN 087 651 992 AFSL/ Australian credit licence 238273.