In an environment of falling interest rates and intense competition between lenders, it makes good financial sense to regularly check if your existing home loan still meets your needs, boasts a competitive interest rate, charges minimal fees and offers useful features.

So, if you have been in the same home loan for some time, or your finances, lifestyle or investment portfolio have changed, then it may be a good idea to give your home loan and your finances a ‘‘health check’’.

A regular home loan health check will ensure that you’re getting the best deal for your needs and circumstances.

If your health check shows there are other home loan products on the market with significantly lower rates, then refinancing may be a good option.

The aim is to weigh up the pros and cons associated with refinancing and confirm that the total costs of doing so will be outweighed by the benefits.

To get a sense of whether now is the right time for you to refinance, start by making a list of all the costs associated with your current home loan.

Then, talk to your local mortgage broker about the home loan options available in the marketplace and compare the total loan costs.

If there is a considerable difference between the loan options, then it may be time to put refinancing on your agenda.

If you are a mortgage holder, I encourage you to take time out to regularly assess your loan situation at least once a year to ensure it meets your current needs and future investment goals and to see if there are any new deals that you might benefit from.

Reassessing your loan structure annually will not only help keep you on track to achieving your property goals, but it may help you save money in the long run.

The savings made by reviewing a loan can be significant.

Of course, finding a loan with a cheaper rate is not the only reason for refinancing.

People refinance for many reasons, such as the ability to access equity, consolidate debts, or to better suit their current lifestyle and financial circumstances.

In any case, it’s important to consider all aspects of a loan, such as any upfront, ongoing and exit fees, plus the availability of features and the quality of customer service provided by your chosen lender, before pushing ahead with refinancing.

Rate discounts are often outweighed by the potential savings that can be made through loan features such as off-set accounts or increased repayment options.

Here are some questions that you might like to consider when weighing up whether refinancing is right for you:

■ Are you dissatisfied with the service provided by your lender?

■ Would you prefer to pay off your home loan sooner?

■ Have your circumstances changed since you first took out your loan?

■ Are you considering buying an investment property?

■ Do you think that debt consolidation might benefit you?

■ Are you planning any home renovations this year?

■ Are there other reasons (for example, to purchase a car or take a major holiday) that you might need to increase your home loan?

For more information on home loans phone Richard Windeyer on 1800 01 LOAN.