Most people book an annual physical.
They service their car.
They even review their subscriptions.
But their mortgage, the biggest financial commitment of their life? It often goes unchecked for years.
An annual mortgage health check isn’t about changing lenders every year or panicking over rates. It’s about making sure your mortgage is still working for you, not against you.
Here’s a simple, seasonal checklist you can run once a year (or anytime your finances change) to stay ahead.
Start With the Basics: What Do You Actually Have Right Now?
Before you optimize anything, get clear on where you stand.
Review:
- Your current interest rate
- Fixed or variable type
- Remaining term and amortisation
- Monthly payment amount
- Any prepayment privileges
Why this matters: Many homeowners don’t even know their exact rate or penalties, and that lack of clarity often costs them thousands over time.
Check If Your Rate Is Still Competitive
Rates change. Lenders’ priorities change. Your mortgage doesn’t automatically improve just because the market does.
Ask yourself:
- Are people with similar profiles getting better rates today?
- Is your lender offering new customers better terms than what you have?
- Are you approaching renewal and being “auto-renewed” into a higher-than-necessary rate?
Why this matters:
Even a 0.25% difference can mean tens of thousands of dollars over the life of a mortgage. This is where many homeowners unknowingly overpay, simply because they didn’t check.
Review Your Prepayment Strategy
If you’ve had any income changes, bonuses, raises, or side income, your mortgage strategy should evolve with it.
Look at:
- Annual lump-sum payment options
- Payment increases flexibility
- Double-up payment features
Why this matters:
Strategic prepayments can shave years off your mortgage and save massive interest, without changing your lifestyle. Even small, consistent extra payments add up faster than most people expect.
Has Your Life Changed Since You Signed?
Mortgages are long-term. Life isn’t.
Revisit your mortgage if you’ve:
- Changed jobs or income structure
- Become self-employed
- Had a child
- Separated or divorced
- Started thinking about investing in or upgrading homes
Why this matters:
A mortgage that made sense three years ago may now be restrictive, expensive, or misaligned with your goals. This is especially important for people who started salaried and are now self-employed.
Understand Your Penalties Before You Need Them
Most homeowners only learn about mortgage penalties after they want to break or refinance, and by then, it’s too late.
Check:
- Interest rate differential (IRD) clauses
- Fixed vs variable break costs
- Portability options
Why this matters:
Some penalties are manageable. Others are brutal. Knowing your exposure helps you plan smarter decisions, not reactive ones.
Assess Your Home Equity
Your equity isn’t just a number on paper.
Review:
- Current estimated property value
- Outstanding mortgage balance
- Available equity
Why this matters:
Equity can be used strategically, for consolidating high-interest debt, funding investments, or future planning, without touching your savings. Ignoring it means missing leverage opportunities.
Stress-Test Your Mortgage (Even If the Bank Did)
Ask yourself:
- Could you handle your payments if rates rose?
- Do you have flexibility in your cash flow?
- Are you overly stretched, or comfortably positioned?
Why this matters:
Peace of mind is underrated. A healthy mortgage isn’t just affordable today, it’s resilient tomorrow.
When Should You Do a Mortgage Health Check?
Ideal times:
- Once a year (set a calendar reminder)
- Before renewal
- After a major life or income change
- When interest rates shift significantly
You don’t need to make a change every time, but you should always know your options.
A Healthy Mortgage Should Adapt With You
Your mortgage shouldn’t be something you “set and forget.”
It should:
- Adjust as your income grows
- Support your financial goals
- Stay competitive with the market
- Give you flexibility, not stress
At Cannect, we believe informed borrowers make better decisions. An annual mortgage health check is one of the simplest habits that can protect your money and your future.
If you’re unsure where your mortgage stands, it’s worth reviewing, no pressure, no commission-driven advice, just clarity.
Watch our Make Money Count videos to gain more insights.