A Proactive Review That Saved $2,500 a Year
How a planned revaluation after 12 months of property improvements reduced a client’s rate by 0.33% — without contributing a single extra dollar.
Rated 5 from 32 Reviews
How a planned revaluation after 12 months of property improvements reduced a client’s rate by 0.33% — without contributing a single extra dollar.
Rated 5 from 32 Reviews
A client came to us to purchase a home with a lower deposit — borrowing 95% of the purchase price, with LMI capitalised into the loan. He felt he’d secured a good price on the property given where the market was at, and he had a clear plan from day one.
That plan: settle in, spend the first 12 months making improvements to the property, then revalue and use any equity gained to bring the LVR below 80% — the threshold at which lenders apply lower rates due to decreased risk. The goal was always to improve his pricing once the numbers supported it.
When a borrower has an LVR above 80%, lenders apply a higher interest rate to reflect the additional risk. At 95% LVR with LMI, this client was firmly in that territory and would remain there until the combination of market movement and property improvements shifted the equation.
The challenge with this kind of strategy is that it only delivers if someone is actually paying attention. Without a broker actively tracking the loan, monitoring the 12 month mark, and knowing which lender’s valuation methodology would return the strongest result, the opportunity simply passes and the client continues paying a higher rate indefinitely.
This is exactly the kind of forward thinking we build into every client relationship. We keep detailed records of each client’s loan structure and set a strategy from day one — not just for settlement, but for what comes next. When the 12-month mark arrived, we ran updated valuations across a number of lenders and identified the one most likely to return the strongest result. The approach was structured around three steps.
| Track the 12-Month Strategy | Identify the Strongest Valuation | Refinance to the Lower Rate |
|---|---|---|
| We maintain detailed records for every client and flag review milestones from day one. In this case, the 12-month mark triggered a proactive valuation run, not a reactive call from the client. | Valuations vary across lenders. We ran updated valuations with a number of lenders and identified the one whose model best reflected the value the client had created, confirming the LVR had returned to below 80%. | With the LVR confirmed below 80%, we reapplied for the loan at the new valuation. The client didn't contribute a single extra dollar. The rate reduction came purely from executing a plan that was set at settlement. |
✓ VR reduced below 80% through market movement and improvements
✓ Rate reduced by 0.33% on a $770,000 loan
✓ $2,500 in interest saved every year
✓ Proactive broker-initiated review — client didn’t need to ask
✓ No extra cash contribution required from the client
✓ Strategy set at settlement, delivered 12 months later
A good broker doesn’t just settle your loan and move on. The value of a relationship-based broker is what happens after settlement — the strategy that’s documented, tracked, and acted on at the right time. In this case, a planned 12-month review, a targeted valuation, and a straightforward refinance delivered $2,500 in annual interest savings. No windfall. No luck. Just a plan and a broker who was paying attention. If you’re looking for a broker who will build a strategy around your situation and follow through on it, we’d love to have a conversation.
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TS Finance Broking Pty Ltd ABN: 30 162 136 790, TS Finance Broking Pty Ltd ABN: 30 162 136 790. Credit Representative #436865 is authorised under Australian Credit License #389087.
Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
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