The Mortgage Trap: Why Loyal Borrowers Are Paying More Than They Should
- Brampton Finance
- 1 day ago
- 3 min read
Most homeowners don’t realise they’re in it.
They made a smart decision when they bought their property.They secured a competitive rate.They set up their repayments.
And then… they stopped looking.
That’s the Mortgage Trap.
What Is the Mortgage Trap?
The Mortgage Trap happens when:
You haven’t reviewed your home loan in over 12 months
Your lender quietly increases your rate margin
New customers are offered sharper deals
You remain on a higher rate simply because you stayed
Banks price aggressively to win new business.They rarely price aggressively to retain loyal customers.
It’s not personal. It’s commercial.
But the cost difference can be significant.
The “Loyalty Tax” No One Talks About
Here’s the uncomfortable reality:
Two borrowers. Same suburb.Similar loan size. Same lender.
One is paying 5.99%.The other is paying 6.49%.
Why?
Because one reviewed their loan. The other didn’t.
On an $800,000 loan, that 0.50% gap could cost around $4,000 per year.
Over five years, that’s $20,000.
That’s not small change. That’s school fees. Investments. Renovations. Buffer.
Why Most People Don’t Escape It
Because life gets busy.
Work ramps up
Kids arrive
Business grows
Fixed rates expire
Rates move up and down
Your mortgage becomes “set and forget.”
But mortgages are not static products.
Lender pricing changes constantly. Credit policies change. Property values move.Your income evolves.
If your loan hasn’t been reviewed recently, there’s a real chance it’s no longer competitive.
It’s Not Just About Interest Rates
A proper mortgage review looks deeper than headline rates.
We assess:
Whether your current rate is competitive
If your lender will reprice
Whether your structure is still appropriate
Offset efficiency
Fixed vs variable strategy
Equity position
Future borrowing capacity
Sometimes we negotiate with your existing lender. Sometimes we restructure. Sometimes refinancing makes sense.
But you don’t know unless you review.
Warning Signs You’re in the Mortgage Trap
You might be overpaying if:
You haven’t reviewed your loan in 12 months
Your fixed rate recently rolled to variable
Your lender hasn’t proactively contacted you
Your property value has increased
Your income has improved
You’ve started a business
You feel your repayments are tighter than they should be
Most borrowers only act when repayments become uncomfortable.
Strategic borrowers review before that point.
The Cost of Doing Nothing
The risk isn’t refinancing.
The risk is:
Sitting 0.30%–0.80% above market
Missing equity opportunities
Carrying an outdated loan structure
Paying thousands unnecessarily
In a higher-rate environment, small differences compound quickly.
Your mortgage is likely your largest financial commitment.It deserves more than “set and forget.”
How Brampton Finance Helps You Escape the Trap
At Brampton Finance, we conduct structured mortgage reviews for homeowners across Sydney and beyond.
We:
Analyse your current loan
Benchmark it against current lender pricing
Negotiate with your lender (where appropriate)
Compare alternative options across the market
Provide clear, strategic advice
We’re brokers — not a bank — so our focus is on ensuring your loan is working efficiently for you.
Sometimes the answer is simple. Sometimes it creates meaningful savings.
Either way, you gain clarity.
When Was Your Last Mortgage Review?
If it’s been more than 12 months, you may be in the Mortgage Trap — and not even know it.
A review doesn’t commit you to switching lenders.It simply tells you where you stand.
And in today’s market, that knowledge matters.
Ready to Check Your Position?
Contact Brampton Finance for a confidential mortgage review.
Brampton Finance
Level 7, 35 Spring StreetBondi Junction NSW 2022
📞 02 9389 1077✉️ info@bramptonfinance.com.au
Comments